Oman issues new risk management rules for power, water sectors

Muscat: The Public Services Regulation Authority has issued two new regulations aimed at strengthening risk management and ensuring business continuity in the electricity and water-related sectors, as well as in the water and wastewater sector.

The authority stated that the first regulation addresses risk management and business continuity in the electricity sector and related water services, while the second focuses on risk management and business continuity in the water and wastewater sector.

The regulations aim to enhance the ability of licensed companies to address potential risks and ensure the continuous delivery of electricity, water, and wastewater services with high efficiency and quality under various circumstances, including emergencies, natural disasters, cyber threats, and operational disruptions.

Among the key provisions, licensed entities are required to establish an integrated risk management and business continuity system within a maximum period of six months from the date the regulations come into force. Companies must also develop comprehensive risk response plans, regularly test and update them, and submit annual reports to the authority detailing risk assessments, exercise results, and updates.

The regulations further emphasize strengthening governance and compliance by requiring companies to provide the necessary technical and administrative resources and to fully cooperate with regulatory audits conducted by the authority.

Administrative fines of up to OMR 500,000 may be imposed for violations of the regulations, with penalties subject to doubling in cases of repeated non-compliance.

The authority said the regulations form part of its broader efforts to ensure the sustainability of electricity, water, and wastewater services in the Sultanate of Oman. They are also intended to enhance sector preparedness to face challenges such as natural disasters, cyber threats, and operational failures, while ensuring the continuity of vital services to the community even under exceptional circumstances.

In addition, the regulations aim to promote transparency and accountability through periodic reporting and continuous oversight, support sustainable management of water resources and wastewater services, and encourage licensed companies to adopt international best practices in risk management and business continuity.