Saudi to increase electricity prices
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Saudi to increase electricity prices

Saudi to increase electricity prices

The proceeds will be used to support a new programme for lower income households


Saudi Arabia’s Electricity and Cogeneration Regulatory Authority (ECRA) has announced new electricity tariffs as part of plans to gradually increase prices from January 1.

In a statement to Saudi Press Agency, the authority said the new prices aimed to raise economic efficiency, rationalise consumption of natural resources and boost the contribution of the non-oil sector.

The savings from the new price tariffs will partly be used to support a new citizen account programme to protect low to middle-income families from austerity measures including a new value added tax and other cost increases.

The Council of Ministers announced the policies of the system on Tuesday and said the first payments would be made on December 21.

Read: Saudi to announce launch of household allowance system – source

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

Industrial and government tariffs will remain the same.

Residential consumption of between 1 and 6,000 KW/h per month will cost 18 halalas per KW/h, rising to 30 halalas for consumption above 6,000 KW/h.

This will double or more than triple prices for some consumers where previous tariffs were 5 halalas for consumption between 1-2,000 KW/h a month and 10 halalas for 2,001-4,000 Kw/h. Those in the 4,001-6,000 KW/h consumption category will see prices slightly decrease from a current rate of 20 halalas.

In the commercial sector prices in the 1-6,000 KW/h category will rise to 20 halalas per KW/h and 30 halalas for consumption above 6,000 KW/h.

Agricultural, non-profit and charitable organisations will have prices of 16 halalas per KW/h for 1-6,000 KW/h of consumption per month and 20 halalas for consumption above 6,000 KW/h.

Private healthcare providers, private schools and education institutes will have prices of 21 halalas per KW/h, while prices for industrial use will be 18 halalas per KW/h and government use 32 halalas per Kw/h.

Immediate instructions have been sent to Saudi Electricity Company and electricity facilities to amend the current billing system.


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