A source at the Industrial Cities Commission (ICT) asserted that the commission plays no role in determining electricity prices, as the responsibility falls solely upon the Ministry of Water and Electricity.
The source added that there is nothing to support media reports that the price of electricity for use in the Kingdom’s industry sector is set to increase. He also said that there have been recent meetings between the ICT, the Ministry of Water and Electricity and the Ministry of Trade, but that no recommendations were made to increase the price of electricity in factories.
The source said that the pros and cons of increasing rates are being investigated. However, industrialists are fearful that the electricity and regulatory authorities may increase the price of electricity for the Kingdom’s industrial cities.
“They have met with the Saudi Electricity Company to ensure there is an increase in prices and clarified their point of view. If factories are faced with increased tariffs then this will be shouldered by consumers,” said Mohamed Al-Sheikha, a member of the Industrial Committee at the Council of Saudi Chambers.
Al-Sheikha said there are government subsidies for national products, yet the Electricity and Co-generation Regulatory Authority (ECRA) is willing to raise prices without any justification.
“How can we increase the price of electricity and also call for us to compete with imported products?” he said.
Ahmad Bkhrama, a former member of the Industrial Committee at the Jeddah Chamber of Commerce, said there needs to be a review of the push factors that have contributed to the decision to raise the price of electricity if a decision to this has in fact been taken.
He added that some economists are asking for the price of water and electricity to increase in order to decrease spiralling consumption.
Hiking electricity rates may raise consumer prices
