Saudi Arabia will raise electricity and water tariffs from January 1, 2027, and King Salman bin Abdulaziz has ordered a SR500 monthly allowance for state employees, retirees and low-income families to offset the cost.
Saudi Energy Co. and the National Water Co. (NWC) announced the tariff changes on Sunday under the kingdom’s governance procedures for adjusting energy and water prices, the Saudi Press Agency (SPA) reported. The king directed the support measures on a proposal by Crown Prince and Prime Minister Mohammed bin Salman, SPA said.
The SR500 monthly allowance applies to civilian and military personnel on civil service salary scales and operational program contracts, retirees, and eligible family members of deceased subscribers or retirees under the social insurance system. Families receiving social security benefits will get a separate SR500 monthly payment.
The government will also raise the minimum wage a Saudi private sector worker must earn to count fully toward Nitaqat Saudization quotas. The threshold will rise to SR5,000 six months after the measures take effect and to SR6,000 twelve months after the first increase.
Under Saudi Energy’s revised schedule, residential customers will pay 21 halalas per kilowatt-hour for monthly consumption of up to 6,000 kWh and 33 halalas above that, Sabq reported. The current residential rates of 18 halalas and 30 halalas have applied since January 2018.
A new fixed monthly charge based on the meter’s circuit breaker capacity will replace the meter reading, maintenance and billing fee. For homes it ranges from SR70 for breakers of 20 to under 100 amps to SR100 for 300 amps and above.
Commercial customers, including private health and education facilities, will pay 25 halalas per kWh up to 6,000 kWh and 35 halalas above that. Industrial customers connected to the grid will pay 23 halalas and government customers 35 halalas for all consumption.
NWC will move residential customers to four consumption tiers. Water will cost SR1 per cubic meter for the first 15 cubic meters a month, rising to SR2, SR4 and SR6 in higher tiers, with wastewater charged at half the water rate.
Non-residential customers will pay a single rate of SR8 per cubic meter for water and SR4 for wastewater. Government customers will pay SR10 and SR5, plus fixed monthly fees of SR1,000 for water and SR500 for wastewater.
Saudi Energy said in a filing to the Saudi Exchange that it will disclose any material financial impact from the tariff change when it occurs, according to Mubasher.
