The proposed changes to the tariff structure were submitted by the Electricity & Cogeneration Authority (ECRA) several months ago.

“It is not known when the council will make its decision, but it is not expected to take a long time,” ECRA governor Fareed Zedan tells MEED in a written statement. “The decision of the council will state when the approved tariffs will come into effect.”

The details of the proposed new tariffs have yet to be revealed but they are based on an analysis of the cost of providing services and the revenue requirements of the power industry.

“The recommended tariffs were based on detailed analysis of the costs of service and the revenue requirements of the electricity industry,” Zedan says.

"Several basic rules were observed in developing the proposed tariffs. These include mitigating as much as possible the negative aspects of the current tariffs, avoiding burdening low income families, reflecting cost of service as much as possible and providing sufficient revenue for the electricity industry to sustain its development and growth.”

Current electricity tariffs have been in place since 2000 and are far lower than in most other countries. All industrial users pay SR 0.12 ($0.032) a kWh. Agricultural consumers pay between $0.013 - 0.032 depending on their level of consumption. Commercial, residential and government consumers pay from $0.013-0.07 a kWh

An increase in tariffs is seen as a necessary precursor to the establishment of a competitive electricity market in the kingdom.