The Minister of Water and Electricity, Engineer Abdullah Al-Hussayen, has confirmed that “the ministry will not reconsider implementation of the electricity tariff for the industrial sector”. Al-Hussayen was answering a question from Okaz about the apparent anger of Saudi industrialists over the new electricity tariff that the ministry announced last week. “Such resentment is expected because those who have to pay more will always express resentment.” He was speaking on the sidelines of the launch of the Riyadh Unit Business Center Sunday. The minister said the Commission for Organizing Electricity and Dual Production, which includes four representatives of the industrial sector, “has studied the new tariff in detail since the decision of the Council of Ministers to reconsider the tariff”. He pointed out that the expected increase in the electricity bills of factories, following the implementation of the new tariff, will not be more than three percent. The minister announced the increase in prices last month for government, commercial and industrial users, according to a local report. The increase will add an expected SR3.2 billion to the Saudi Electricity Company's (SEC) annual revenue. The increase will come into effect on July 1. Household consumers are excluded from the price hike. The minister had said last week that the tariff for commercial and government sectors per kilowatt/hour will be based on three bands. In the commercial sector the tariff for the band from 1 to 4,000 kilowatts/hour will be 12 halalas. The same band in the government sector will be charged 26 halalas. The second band from 4,001 to 8,000 kilowatts/hour in the commercial sector will be charged 20 halalas while for the government sector it will be 26 halalas. The tariff above 8,000 kilowatts/hour will be 26 halalas for commercial and government sectors. In response to a question from Okaz on preparations for summer and possible water cut-offs, Al-Hussayen said: “It is impossible to say that no cut-offs will occur, but what we want to confirm is that we are working hard and striving to provide service to the consumer.”
