Riyadh – Mubasher: Saudi Arabia is currently working on reforms in its electricity sector, alongside procedures to develop the sector, Saudi Press Agency (SPA) reported, citing minister of energy, industry and mineral resources Khalid bin Abdul Aziz Al-Falih as saying.
The electricity industry will be restructured through separating its activities and dividing it into several specialised companies in the fields of power generation, transmission, distribution, and service provision, the minister revealed.
Saudi Arabia plans to convert the electricity sector, which partially relies on government subsidies, to an independent commercial sector, he added.
Saudi Arabia is currently working on making the newly-established Saudi Company for Energy Purchase Ltd an independent firm, the news agency added.
A new electricity tariff will be established to cover the deficit resulting from the difference between the assumed income of electricity on commercial basis and the income from the official tariff, Al Falih revealed, noting that the new tariff will take into consideration the changes in the electricity consumption tariff.
Commenting on the increase in fuel and electricity prices, the minister noted that such hikes will be gradually implemented to avoid the negative impact on economic growth or domestic products.
The Saudi Ministry of Energy plans to raise the efficiency of the electricity sector through diversifying energy sources, Al Falih further highlighted, indicating that the ministry was also planning to raise the efficiency of power plants to be in line with international standards.
Al-Falih forecast that Saudi Arabia will implement over SAR 250 billion ($66.66 billion) in power generation projects in the coming five years.
