Saudi Arabia applies new electricity tariffs as of today

Saudi Arabia will start today, Jan. 1, 2018 imposing new electricity tariffs, approved by the Cabinet last month.

Household consumption will be estimated under two tranches instead of four, while the commercial sector will have two tranches instead of three.

Industrial and government tranches, however, will remain the same.

The move is aimed at increasing efficiency and rationalizing consumption. In addition, part of the savings from the new price tariffs will go towards the Citizen’s Account program to support low and middle-income families against austerity measures.

Residential consumption of between 1 and 6,000 KW/h per month will cost SAR 0.18 per KW/h, rising to SAR 0.30 for consumption above 6,000 KW/h.

In the commercial sector, prices for the 1-6,000 KW/h category will be SAR 0.20 per KW/h and SAR 0.30 for consumption above 6,000 KW/h.

Agricultural, non-profit, and charitable organizations pay SAR 0.16 per KW/h for 1-6,000 KW/h of consumption per month, and SAR 0.20 for consumption above 6,000 KW/h.

Private healthcare providers, private schools and education institutes will have prices of SAR 0.21 per KW/h.

The government sector will continue to pay SAR 0.32 per Kw/h.