Saudi Electricity Company has awarded a SR2.2m ($574m) contract to a US consultancy to study the restructuring of the utility’s transmission and distribution businesses.

BC Middle East, the Saudi office of the US’ Booz & Company, has been asked to complete the study by November.

The utility will set out a framework for the unbundling of Saudi Electricity’s assets into a distribution company and a separate transmission network operator, likely to be called the Saudi Grid Company.

Booz has already completed a study for the restructuring of Saudi Electricity’s generation business.

The company will split its generation assets into four different businesses according to size, the type of fuel each uses as feedstock and age.

Saudi Electricity will continue to exist as a holding company for the six new entities.