‘Households pay for only 8% of electricity used’

‘Households pay for only 8% of electricity used’
Updated 25 September 2014

‘Households pay for only 8% of electricity used’

‘Households pay for only 8% of electricity used’

Households are paying for only 8 percent of their actual usage because the Saudi government subsidizes 92 percent of the cost, a senior official of the Electricity and Co-generation Regulatory Authority (ECRA) said recently.
Electricity tariffs in the Kingdom is the cheapest in the world, with the government providing either direct support or subsidized fuel prices at a cost of SR100 billion a year, Abdullah Al-Shihri, governor of the ECRA, was quoted as saying by the Saudi Press Agency.
The government of Custodian of the Two Holy Mosques King Abdullah has invested a great deal in electricity and water desalination in the country, he said.
Electricity production has managed to keep pace with economic growth and an increase in the population. Demand for power is growing at an annual rate of 8 percent, and up to 12 percent, in some regions. Generation capacity was at 69,761 megawatt at the end of 2013, he said.
He said there were over 7 million electricity users in the country at the end of 2013, which requires large and urgent investments.
The leadership of the country was keen to improve and provide safe and reliable electricity to citizens and residents, he said.
He said the government provided 350,000 poor people with even greater subsidies for electricity at the end of 2013, with a plan in place to raise this figure to 500,000 in the next few years.
The ECRA is a financially and administratively independent organization that regulates the electricity and water desalination industry in Saudi Arabia.