RIYADH: A new electricity tariff, which takes into consideration the financial position of low and middle income subscribers, has been presented to the top authorities for approval, said Saleh Al-Awaji, deputy minister of electricity.
The Electricity and Dual Production Organizing Authority has made the proposal, Al-Awaji told Al-Watan newspaper. He added that the authority has thoroughly revised the current tariff according to scientific and technical parameters, which include production and transmission costs, and taking into account the interests of all sectors, particularly low and middle income subscribers. He, however, warned that the revision of the tariff does not necessarily mean that prices will be reduced.
Al-Awaji said Saudi Arabia needs huge investments in the electricity sector in coming years. “We need to invest about SR180 billion by 2017 on electricity production and transmission,” he said.
Al-Awaji said the first phase of a project to link the grids of Saudi Arabia, Bahrain, Kuwait and Qatar, which began in November 2005, will be completed before the end of the year, and that the experimental operation of the network will begin in early 2009. About 78 percent of the first phase of the project, which costs SR4 billion, has been completed, he added.
He also said that the United Arab Emirates has joined the first phase of the project and that negotiations were under way with Oman to join.
According to the deputy minister, the electricity network grids of all of the six GCC member countries will be linked by 2010. He said contracts worth about SR39 billion were signed this year with a view to boost electricity services. He also added that an awareness campaign would be organized next October to rationalize electricity consumption.
