The Saudi government has removed one of the hurdles preventing the long-planned privatization of Saudi Electricity Company (SEC), with last week’s raising of household electricity tariffs being the first step in a plan to “gradually” increase energy prices.
Raising the lowest band of residential electricity pricing to the same level as the industrial tariff from 1 January (see table) will in theory hit low income households hard – though Riyadh says they will be compensated via a ‘Citizen’s Account’ (MEES, 15 December). However, the new tariffs will boost SEC’s income and therefore its attractiveness to potential investors. (CONTINUED - 1078 WORDS)
