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The Council of Ministers approved the new regulation of the high electricity consumption tariff for installations.
The decision clarified that the tariff for high electricity consumption for installations is divided into two categories, so that the first category concerns those sectors in which the ratio between the cost of electricity and the operating costs without the raw material costs is 20% or more, while the second category is for those sectors in which the ratio of the cost of electricity to the operating costs without the raw material costs is between 10% and 19, 9%.
He indicated that the tariff for the first category is 12 halalas / kWh for consumption related to the transport network, and 18 halalas / kWh for consumption related to the distribution network, while the tariff for the second category is 18 halalas / kWh for related consumption. to the transmission network, and 24 halalas / kWh for consumption connected to the distribution network.
He pointed out that this tariff does not include consumption in the public and residential sectors, institutions, charities and cooperatives, and private health and educational establishments, and that it does not include the tax. on added value.
The decision provided for the formation of a committee headed by the Ministry of Energy, made up of the Ministry of Finance, the Ministry of Investment, the Ministry of Economy and Planning, the Regulatory Authority of the ‘water and electricity, and local content and public procurement. Cyclical Authority.
The decision confirmed that the period of application of the high electricity consumption tariff for new installations requiring an electrical service before the end of 2023, is 7 years from the date of the launch of the electric current in installation, and it remains fixed throughout this period, while it applies to new installations that require an Electricity service receipt after the end of 2023, the high electricity consumption tariff from the date of implementation. installation service until the end of 2030.
Terms & Conditions
The high electricity consumption tariff mentioned in the decision is applied to establishments that meet the following requirements:
1- These establishments should be part of the eligible sectors specified by the aforementioned committee.
2- The annual electrical load factor must not be less than (80%).
3- The level of energy efficiency must comply with the standards established by the Saudi Energy Efficiency Center.
Categories of agricultural consumption, foundations, charities and cooperatives
He said that the Water and Electricity Regulatory Authority will, within 3 months from the date of this decision, take the necessary measures to divide the category of agricultural consumption, institutions, charities and cooperatives and the like into two categories as follows:
1- The consumption category tariff for the agricultural sector.
2– The definition of consumption category for institutions, charities and cooperatives, etc.
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