Saudi Electricity plans to privatize assets in one year

Saudi Electricity Co. (SEC) plans to privatize its assets within a year as part of a drive to increase efficiency, the utility’s chairman Saleh al-Awaji told Al-Arabiya TV.

Assets will be offered to local and foreign investors, he said, referring to Chinese investors’ interest in the Saudi electricity segment.

Al-Awaji said demand for power in the country has declined for the first time in the company’s 15-year history after the removal of government subsidies.

Earlier this year, the Saudi cabinet introduced a number of cost-cutting measures, including subsidy cuts which led to an increase in fuel and electricity prices.

Saudi Arabia’s utility regulator said in February that SEC would be split into several firms by the end of 2016 to increase efficiency, according to earlier news reports.