Electricity Ministry: No raise in home rates
The Ministry of Electricity and Energy has confirmed that household consumption rates for up to 1,000 kilowatt-hours per month will remain unchanged. This is part of a reform plan based on restructuring pricing to increase the General Electricity Company’s revenues and achieve financial sustainability. The proposals include raising the consumption tariff beyond 1,000 kilowatt-hours, with a suggested increase to 700 riyals per kilowatt-hour instead of the current 19 riyals. Additionally, there are proposals to adjust prices for the commercial, industrial, and agricultural sectors, as well as to increase subscription and service fees. These measures come amid a cumulative financial crisis caused by weak collection efforts, rising production costs, aging networks, and meter manipulation. The ministry emphasizes that these steps must be implemented in conjunction with improved collection processes and the enforcement of overdue payments to non-paying entities, in order to save the electricity sector from collapsing.
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