In pursuit of Vision 2030, Saudi Arab has launched some reforms effective from 1st January, 2018. One of them include decreasing subsidy on Electricity, thus increasing the price substantially.
Earlier the electricity tariff was divided into 5 slabs for all consumers (residential, commercial, industrial, agricultural, government)
- For 1 to 2000 units, per unit cost was 5 halalas
- For 2001 to 4000 units, per unit cost was 10 halalas
- For 4001 to 6000 units, per unit cost was 20 halalas
- For 6001 to 8000 units, per unit cost was 30 halalas
In the new tariff, that is being applicable from 1st January 2018, there are now only 2 slabs
- From 1 to 6000 units, per unit cost will be 18 halalas for residential consumers
- For more than 6000 units, per unit cost will be 30 halalas for residential consumers
With the increase in electricity tariff, the total electricity bill for the residential consumers will be very high. Earlier if you used 1000 units, it would have cost only 50 SR plus the meter reading charges (usually 15 SR). So the total bill would have been around 65 SR. With the new tariff in effect from 1st January 2018, 1000 units of electricity will now cost 180 SR plus 15 SR for meter reading charges. The grand total with the new tariff will be 195 SR. An effective increase of 200% in the electricity bill.
The more units someone consumes, will have a bit less but still very significant, effect on their monthly electricity bill. But the most effected consumers will be the ones who consume less than 2000 units, as for them, there will be an increase of 260% in the electricity tariff.
The meter reading charges have not been changed and will remain the same as it were earlier.