Ministry of Energy presents draft table of violations for activities related to the Distribution Law of dry gas and LPG

08 Jan 2024

News
Ministry of Energy presents draft table of violations for activities related to the Distribution Law of dry gas and LPG

A draft table of violations for activities pertaining to the Distribution Law of dry gas and liquefied petroleum gas (LPG) for residential and commercial use has been provided by the Ministry of Energy. A maximum fine of SR5 million will be levied against those who violate the law. The law's provisions, executive regulations, activity regulations, the manual for offering the service of distributing and selling LPG or cooking gas, the terms and conditions of the licence, and directives and decisions from the ministry are all included in the table of violations. Each violation's category, amount, and guidelines for applying the financial penalties are detailed in the table of infractions.

According to the draft law, anyone found in violation of the law's provisions, its executive regulations, regulations, licence conditions, instructions, or decisions issued by the ministry will face one or more of the following penalties: a fine of no more than SR5 million; partial or complete suspension of activity for a maximum of one year; or licence cancellation.

In addition to being required to return any money obtained as a result of the violation to its owners, the law stipulates that a violator will be fined up to ten per cent of the original violation's value for each day until the violation is corrected. If the violator repeats the same offence within three years of the previous penalty decision becoming final, the fine will be doubled. Additionally, it states that a local newspaper will publish an account of the disciplinary actions at the violator's expense.

This will vary depending on the kind of infraction, how serious it is, and how big of an impact it has; publishing will happen when the judgement is made in full. If the relevant committee chooses to penalise the violator financially, the fine will follow the schedule outlined for each activity. This does not affect the committee's authority to apply any additional penalty from the list of penalties outlined in Article 16 of the law that it deems suitable.

Violations were divided into three primary categories by the proposed law: high, medium, and low. It also emphasised the standards for applying the monetary penalty decided upon by the committee. Transporting gas from its sources to bottling and storage facilities or the independent gas distribution network without a valid licence is one of the serious infractions, with a minimum fine of SR250000 and a maximum fine of SR5 million.

The licensee has committed serious breaches, such as not allowing the temporary manager to perform managerial duties, not acting in connection with the activity without first obtaining ministry approval, and not paying the allowed remuneration for the activity.

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