By: OrePulse

Saudi Arabia's state-run power procurement company has announced revised electricity consumption tariffs covering residential, commercial, industrial, agricultural and charitable-sector customers, to take effect January 1, 2027. The move was announced alongside a separate royal decision raising monthly financial allowances by 500 riyals for eligible government employees and retirees.

Under the new schedule announced by the Saudi Power Procurement Company (SPPC), residential customers will pay 21 halalas per kilowatt-hour for monthly consumption up to 6,000 kilowatt-hours, rising to 33 halalas per kilowatt-hour beyond that threshold. One hundred halalas equal one riyal.

Commercial customers, along with private health and education facilities, will be charged 25 halalas per kilowatt-hour for the first 6,000 kilowatt-hours and 35 halalas per kilowatt-hour above it. Industrial facilities connected to the transmission or distribution network will pay a flat 23 halalas per kilowatt-hour. Agricultural consumers face a two-tier rate of 19 halalas per kilowatt-hour up to 6,000 kilowatt-hours and 23 halalas per kilowatt-hour beyond that level, while charitable associations will be billed 17 halalas and 21 halalas per kilowatt-hour across the same two consumption tiers. SPPC's tariff table also lists a government rate of 35 halalas per kilowatt-hour.

A separate monthly charge is also applied, set according to the rating of the customer's circuit breaker and their account category; SPPC said this means the amount owed varies by connection type and classification.

King Salman bin Abdulaziz approved a package of monthly financial support measures, acting on a proposal from Crown Prince and Prime Minister Mohammed bin Salman. Those eligible include civilian and military government employees, retirees, and the surviving family members of deceased subscribers and retirees under the kingdom's social insurance system, who will see their monthly allowance rise by 500 riyals, the Saudi Press Agency reported.

The tariff revision comes as Saudi Arabia's electricity generation continues to expand. Generation rose 2.84 percent in 2025 to 471.4 terawatt-hours, up from 458.4 terawatt-hours in 2024. Natural gas accounted for 63.7 percent of generation last year, equivalent to 300.4 terawatt-hours, up from a 61.5 percent share a year earlier. Oil's contribution fell to 32.1 percent, or 151.2 terawatt-hours, down from 36.1 percent. Solar power supplied 3.9 percent of generation and wind 0.3 percent.

The kingdom has also raised its renewable energy capacity target to 130 gigawatts by 2030, up from a previously stated goal of 58.7 gigawatts, as it works to diversify its generation mix ahead of the new tariff structure taking effect.

The revised consumption tariffs are scheduled to take effect nationwide from January 1, 2027, SPPC said, replacing the rates currently charged across the kingdom's power sector.