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The Saudi Cabinet approved dividing tariffs for electricity-intensive establishments into two categories, the official gazette reported on Oct. 1.

 

The first category includes the sectors in which the ratio of electricity costs to operating costs, excluding raw materials, is 20% or more.

 

The second category includes the sectors in which the ratio of electricity costs to operating costs, excluding raw materials, ranges between 10% and 19.9%.

 

This tariff does not include the following sectors: government, residential, charitable, cooperative institutions and societies, private health and educational facilities.

 

The tariff for the heavy consumption of electricity for the abovementioned categories does not include value-added tax (VAT), as follows:

 

Category

Consumption

Network Type

Tariff (halala/kWh)

First

All consumption

Connected to the transmission network

12

Connected to the distribution network

18

Second

All consumption

Connected to the transmission network

18

Connected to the distribution network

24
 

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