Saudi Arabia to hike electricity tariffs from January 1

Saudi Arabia’s Electricity and Cogeneration Regulatory Authority (ECRA) has unveiled new electricity tariffs as part of plans to gradually increase energy prices as of January 1, 2018, it said in a statement.

The step is aimed at increasing efficiency and rationalizing consumption, in addition to boosting the non-oil sector’s contribution.

Part of the savings from the new price tariffs will go towards the Citizen’s Account program to support low and middle-income families against austerity measures.

Under the new electricity prices, consumption tariffs for residential, commercial, agricultural, healthcare, private education, and charitable institutions will increase.

Industrial and government tariffs, however, will remain the same.

Residential consumption of between 1 and 6,000 KW/h per month will cost SAR 0.18 per KW/h, rising to SAR 0.30 for consumption above 6,000 KW/h.

In the commercial sector, prices for the 1-6,000 KW/h category will be SAR 0.20 per KW/h and SAR 0.30 for consumption above 6,000 KW/h.

Agricultural, non-profit, and charitable organizations pay SAR 0.16 per KW/h for 1-6,000 KW/h of consumption per month, and SAR 0.20 for consumption above 6,000 KW/h.

Private healthcare providers, private schools and education institutes will have prices of SAR 0.21 per KW/h.

Prices for industrial use will be maintained at SAR 0.18 per KW/h, while the government sector will continue to pay SAR 0.32 per Kw/h.

Immediate instructions were sent to Saudi Electricity Company (SEC) and other electricity facilities to implement the new tariffs.