Annual government spending on electricity is expected to reach SR15 billion during the next five years, Dr. Abdullah Al-Shahri, governor of the Electricity & Co-Generation Regulatory Authority, announced yesterday.
He estimated the annual growth of electricity demand at 7%.
Speaking to the Saudi Press Agency on the occasion of a survey being conducted by King Abdulaziz City of Science and Technology on electricity consumption, he said 50% of the Kingdom’s electricity supply is utilized by households and 20% by industries.
“The additional demand for electricity was caused by the wastage of power and this has resulted an excess expenditure of SR 7.5 billion annually by the state,” the governor said. The rate of consumption declined by 3.5% in 2011, he said expecting an annual growth in demand of 5% in the coming 10 years.
He said the shift from 127/220V to 230/400V would not affect the cost of consumption. The government subsidy has been instrumental in reducing the bill by 40% from its original price. Consumers in the housing sector pays only 8% percent of the real cost. In 2010, the state subsidy reached SR6 billion, he pointed out.
The government pays SR 500 million for the electricity bills of 240,000 social insurance beneficiaries and SR 100 billion to subsidize fuel annually.
Power demand may grow 7% yearly
