Saudi Arabia’s council of ministers has approved gradual revision of energy prices in the Kingdom including changes to electricity tariffs effective from Jan. 1. 2018, the Electricity and Cogeneration Regulatory Authority (ECRA) has announced on Tuesday.
Residential electricity consumption of 1-6000 KW/h per month will cost 18 halalas KW/h. But consumption above 6000 KW/h per month will cost 30 halalas KW/h, reported the Saudi Gazette.
Commercial electricity consumption of 1-6000 KW/h per month will cost 20 halalas KW/h. But consumption above 6000 KW/h per month will cost 30 halalas KW/h.
Electricity consumption for agriculture use or by non-profit organizations, foundations, charities etc. will cost 16 halalas KW/h for 1-6000 consumption KW/h per month. But consumption above 6000 KW/h per month will cost 20 halalas KW/h.
Electricity consumption by private healthcare institutions, education institutes and private schools will cost 21 halalas KW/h.
Consumption for industrial use will cost 18 halalas KW/h and for government use it will cost 32 halalas KW/h.
ECRA said, “This step will raise our economic efficiency and will strengthen our non-oil sectors as they become our economic development engine. It will rationalize the consumption of natural resources for future generations.”
It said the changes to electricity tariffs will help redirect support to the most deserving beneficiaries through the Citizen’s Account Program, which is implemented and supervised by the Ministry of Labor and Social Development.
ECRA explained that the approved tariffs are designed to cover the cost of services and ensure sustainable electricity supply throughout the Kingdom.
It will also contribute to improving the quality of service, increasing productivity, as well as opening up the field for competition.
The Authority explained that it is working in coordination with both the Saudi Electricity Company (SEC) and the Power and Water Utility Company for Jubail and Yanbu (MARAFIQ) to take all necessary measures and amend the billing system accordingly.