The Council of Ministers approved the new regulation for the tariff of heavy consumption of electricity for facilities.
The decision clarified that the tariff for heavy consumption of electricity for facilities is divided into two categories, so that the first category is for sectors in which the ratio of electricity cost to operational costs without raw material costs is 20% or more, while the second category is for sectors in which the ratio of electricity cost to operational costs without Raw material costs are between 10% and 19.9%.
He indicated that the tariff in the first category is 12 halalas/kWh for consumption related to the transmission network, and 18 halalas/kWh for consumption linked to the distribution network, while the tariff for the second category is 18 halalas/kWh for consumption related to the transmission network, and 24 halalas/kWh for connected consumption. in the distribution network.
He pointed out that this tariff does not include consumption in the government and residential sectors, institutions, charities and cooperatives, and private health and educational facilities, and it does not include value-added tax.
The decision stipulated the formation of a committee headed by the Ministry of Energy, with the membership of the Ministry of Finance, the Ministry of Investment, the Ministry of Economy and Planning, the Water and Electricity Regulatory Authority, and the Local Content and Government Procurement Authority. Cyclic.
The decision confirmed that the period of application of the tariff for heavy consumption of electricity for new facilities that apply for an electrical service delivery before the end of 2023, is 7 years starting from the date of launching the electrical current to the facility, and it remains fixed throughout that period, while it is applied to new facilities that apply for a service receipt. Electricity after the end of 2023, the tariff for heavy consumption of electricity from the date of launching the current to the facility until the end of 2030.
The tariff of heavy consumption of electricity mentioned in the decision shall be applied to establishments that meet the following requirements:
1- Those establishments should be among the eligible sectors identified by the aforementioned committee.
2- The annual electrical load factor shall not be less than (80%).
3- The level of energy efficiency should be in line with the standards set by the Saudi Energy Efficiency Center.
Categories of agricultural consumption, foundations, charities and cooperatives
He stated 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, charitable and cooperative societies 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, charitable and cooperative societies and the like.