The Saudi Minister of Energy, Prince Abdulaziz bin Salman bin Abdul-Ghaziz, stated that the structural, organizational and financial reforms that the royal order was approved with, which we will talk about, are clear and studied steps towards enhancing the efficiency, effectiveness and sustainability of the electricity sector in the Kingdom.

Prince Abdulaziz bin Salman stated in the conference attended by Abdulaziz Al-Fraih, Chairman of the Committee in the Ministry of Finance, Dr. Abdulrahman Al Ibrahim, Governor of the Electricity and Co-generation Regulatory Authority, and Dr. Khaled Al-Sultan, Chairman of the Board of Directors of the Saudi Electricity Company, that these reforms reflect what the Kingdom is witnessing in all areas of transformation after the passage of 4 years from the launch of the Kingdom's Vision 2030 under the guidance and leadership of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz and under the direct supervision and follow-up of Prince Muhammad bin Salman, Crown Prince, Deputy Prime Minister and Minister of Defense, as the Kingdom moved from the stage of developing plans and founding to the stage of practical application and implementation in many areas. .

 The Minister of Energy said, "There is no doubt that the numbers and information provided by the Crown Prince about what has been accomplished in his recent extraordinary speech confirm that the Kingdom is steadily moving on the road to achieving the hopes and aspirations of its leadership and people."

He stressed that what was announced today will contribute to achieving sustainability and raising the efficiency of the electricity sector in the Kingdom, and will positively affect its performance in order to raise the generation efficiency of the stations, reduce the use of liquid fuels, raise the level of environmental commitment, and enhance the reliability of the electricity transmission network to enable the production of electricity from renewable energy sources in order to achieve the goals The optimum energy mix for producing electricity, improving distribution networks and converting them into smart and digital networks to enhance the reliability of service provided to the consumer.

The Minister of Energy clarified that the approved reforms include canceling the government fee imposed on the Saudi Electricity Company and treating the net government dues from the Saudi Electricity Company registered in its approved financial statements by converting it into a financial instrument classified within the shareholders ’equity with a return of 4.5% and the government shall regularly pay the company's dues. This contributes to enhancing the financial and operational sustainability of the company.

He said: The Saudi Electricity Company’s revenues will be regulated according to a new mechanism that enables it to work efficiently to recover the costs involved in providing the service and to achieve a weighted return on the investment cost (WACC) of 6% on the aspects of activities organized by the Electricity and Co-Production Regulatory Authority, so that the difference between the required revenue is covered. And the income achieved from the approved tariff through the budget calculation in exchange for the company's commitment to measures aimed at raising the quality of service provided to the consumer.

He indicated that the Ministerial Committee for Restructuring will follow up the implementation of the sector's investments in priority projects and complete the work of restructuring the sector under the supervision of the Supreme Committee for Energy Mix Affairs to produce electricity and enable the renewable energy sector.