
The government has referred to Parliament a landmark piece of legislation aimed at overhauling Bahrain’s electricity and water sector.
The new 88-article Electricity and Water Sector Regulation Law is set to dissolve the existing Electricity and Water Authority (EWA) and replace it with Electricity and Water Regulatory Authority (EWRA), while also creating a National Electricity and Water Company (NEWC) to manage the operations.
Key components of the law include:
1. Establishment of a new regulatory framework: The EWRA will be a public body with legal standing and full financial and administrative independence. It will report to the relevant minister and have exclusive powers to regulate all electricity and water activities in Bahrain, including licensing, tariffs, performance monitoring, environmental compliance, and the promotion of competition and consumer protection in the sector.
2. Dissolution of the EWA: All the assets, liabilities, contracts and obligations of the authority will be transferred to the NEWC, which will operate under EWRA’s regulatory oversight.
3. Formation of the NEWC: The company will assume the operational responsibilities of electricity and water production, transmission, distribution and supply. It will also be responsible for a transition plan to ensure a smooth transfer of operations from the EWA, in accordance with the directives of the EWRA.
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