Rural Areas Electricity Company is a vertically integrated entity that is authorized by its Licence to generate electricity and desalinate water, transmit, distribute and supply electricity to customers in its Authorized Area. RAECO is responsible for the electrification of rural areas and secures electrification funding through a mechanism established by Article (87) of the Sector Law. The Sector Law requires the Authority to encourage electrification to rural communities through extension of the MIS and through the disbursement of rural electrification funding.