Saudi Electricity sees no impact on 2020 net income after bill discounts

Saudi Electricity Co. (SEC) expects no financial impact on net income in 2020, following the Royal Decree issued on subsidizing electricity bills for the commercial, industrial and agricultural sectors, the utility said in a bourse filing on Thursday.

SEC added that it received a letter from the Electricity & Cogeneration Regulatory Authority (ECRA) about the Royal Orders issued on:

- Companies in the industrial and commercial sectors can optionally pay 50% of the electricity bills for April, May and June, provided that the remaining dues will be paid in six month installments as of Jan. 2021. Payments can be further deferred if necessary;

- A 30% discount will be applied on electricity bills of the companies operating in the commercial, industrial and agricultural fields for two months, to be extended if necessary. The utility provider will be compensated in return and will be partially exempted from paying municipalities fees.

Any potential decline in revenue will be offset by a similar drop in operating expenses, represented by municipalities fees, SEC concluded.