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Saudi Electricity Co. (SEC) has been exempted from paying a 2 percent power consumption fee to the municipalities by virtue of a royal decree on Monday, the utility firm said in a statement to Tadawul on Thursday.
Accordingly, the outstanding payments to the municipalities until the end of 2016will be canceled.
SEC will cut current liabilities in the balance sheet, which will be recorded as non-recurring revenue in the comprehensive income statement at SAR 6.1 billon.
Meanwhile, operating expenses will be also reduced by 2 percent from March 2, the statement added.
The exemption was confirmed by a letter from the Electricity & Cogeneration Regulatory Authority (ECRA).
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