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Saudi Electricity Co.'s (SEC) office building
Saudi Ministries of Energy and Finance announced finalizing all the legal procedures related to purchasing Saudi Electricity Co.’s (SEC) 100% ownership in Saudi Power Procurement Co. (SPPC).
The Energy Minister said in a tweet that the move will make SPCC a wholly-owned government company.
The step comes within the comprehensive regulatory framework to restructure the electricity sector, complement regulatory reforms approved by the Ministerial Committee for the Restructuring of the Electricity Sector with the support from the Supreme Committee for Energy Mix Affairs.
SPPC will be responsible for planning and tendering the power generation projects, concluding agreements to purchase and wholesale electricity, developing market services, exchanging electricity with other countries, and purchasing fuel resupplied to producers.
The move will also help achieve many of the Kingdom’s goals, such as reducing reliance on liquid fuels, raising environmental compliance levels, encouraging investments, boosting Saudization and ensuring affordable and sustainable supply. Further, it will lead to higher transparency in commercial relationships among parties operating in the electricity sector.
Saudi Electricity signed, on June 29, a business transfer framework agreement with SPPC, which fulfilled all legal arrangements for the sale and transfer of business assets, liabilities and contracts related to SPCC, a wholly-owned subsidiary of SEC, to become a wholly-owned government entity.
SEC and SPPC also entered into energy conversion, bulk supply, novation of fuel supply and fuel transportation agreements, effective from July 1, data compiled by Argaam showed.
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