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Saudi Arabia’s move to hike electricity tariffs will not have a material impact on Saudi Electricity Co.’s revenue or operating expenses, as the new prices will be subject to the amount of consumption, the utility company said in a bourse statement.
Based on a letter from the Ministry of Finance, Saudi Electricity will pay a state fee equivalent to the difference between the current tariff and new one, which will become effective from Jan. 1, 2018.
The letter emphasized that the state will continue its financial support to the company to ensure the liquidity necessary for its projects.
On Tuesday, the Saudi Cabinet approved the gradual correction of prices on some energy products. Accordingly, the Kingdom’s Electricity and Cogeneration Regulatory Authority (ECRA) has unveiled new electricity tariffs effective from Jan. 1, 2018.
Under the new prices, consumption tariffs for residential, commercial, agricultural, healthcare, private education, and charitable institutions will increase.
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