Wednesday 18 / September / 2024
Muscat: The first new law to regulate the sector of the Authority for Public Services Regulation has been published after the changes that took place during the past two years.
The Official Gazette published details of Royal Decree No. 40/2023 issuing the law regulating the water and sanitation sector. The decree included a reference to the Chairman of the Board of Directors of the Authority for Public Services Regulation issuing the regulations and decisions necessary to implement the provisions of the attached law. Until they are issued, the regulations and decisions in force will continue to work, in a manner that does not contradict its provisions.
The law obliges everyone who engages in any activities subject to regulation under the provisions of the attached law to reconcile his situation in accordance with its provisions within six months from the date of its enforcement. This period may be extended by a decision of the Board of Directors of the Authority for Public Services Regulation for another six months.
It is considered the first law to regulate the sector, after the changes that took place during the past two years, by referring the sector to the Ministry of Agriculture, Fisheries and Water Resources, changing the name and terms of reference of the Authority for Public Services Regulation, canceling the Public Authority for Water, and merging the two companies Diam and Haya to become one company under the name Namaa for water services.
Works of the Ministry of Agriculture, Fisheries and Water Resources:
The law specified 8 actions to be undertaken by the ministry in this context, including implementing the government's policy on developing and encouraging the water and sanitation sector, and setting principles for governance of it, and adopting decisions and procedures that contribute to encouraging the private sector to invest in this sector.
The Authority for Public Services Regulation:
The law specified 13 actions to be carried out by the commission in this context. This determination is the first of its kind since the issuance of Royal Decree No. 131/2020 in the matter of the water and sanitation sector, as the Authority’s terms of reference at that time were limited to “regulating the activities of the water and sanitation sector” only.
One of the authority’s tasks, in accordance with the new law, is to define the specifications and conditions for water, sewage and treated water networks and equipment, the mechanism for registering and approving them, protecting the interests of subscribers, and protecting public health and safety.
Wells Water:
The provisions of the law apply to the practice of one or more activities of producing, transporting or supplying well water. The holder of a licence to practice activities related to well water must abide by the laws and decisions.
Regulated activities:
The law specified 11 activities that are required to obtain a prior licence, including the production, transportation and supply of water, and wastewater related collection, transportation, treatment and disposal.
This is in addition to the obligations of the Oman Power and Water Procurement Company stipulated in this law.
Waste Disposal:
The law prohibits anyone from discharging waste resulting from commercial, industrial, agricultural or medical activities that contain hazardous elements or require special treatment into the licensee's sewage network without prior approval.
Tariff:
The law defines tariff base controls that depend on the economic impact of the tariff on the licensee, the impact of tariff levels on the operations and sustainability of the water and sanitation sector, and the social and economic impact on subscribers, including the subsidy mechanism for specific groups.
Accordingly, the authority prepares the tariff bases in accordance with the controls, presents them to the Council of Ministers for approval, and publishes them in the Official Gazette and on the authority's website.
The current tariff bases shall continue to be applied until the bases are approved in accordance with the aforementioned.
Annual financial support:
The law specified the commitment of the Ministry of Finance to provide annual financial support due to operating companies and to each licensee who engages in an activity that is eligible for support, according to four points, including the Authority’s evaluation of the permissible and applicable level of return, and the Authority's determination of the value of the return related to any activity eligible for support, and others.
Market liberalisation:
The law authorised the Authority to implement market liberalisation procedures after the approval of the Council of Ministers, and specified 6 measures that are considered market liberalisation, including changing the market structure, the establishment of new operating companies, or the government’s assignment of any economic interest in the Electricity Holding Company and the Oman Power and Water Procurement Company or any one of them, allowing and encouraging competition among those licenced to engage in the activity of supplying water and treated water.
The law includes regulating licensing provisions and conditions for licensing the activity of water supply, as well as for the activity of collecting, transporting, treating and discharging wastewater.
It also included a section dedicated to resolving disputes and penalties, and included specifying penalties for practicing activities without a licence, tampering with water metres, water pollution, and others.
