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[BUSINESS] · Saudi Arabia · 11 sources

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Saudi Arabia announces utility tariff changes and citizen support packages

King Salman bin Abdulaziz Al Saud has issued royal directives to implement a series of economic support measures for Saudi citizens, coinciding with upcoming adjustments to electricity and water tariffs. The new utility rates, announced by the Saudi Energy Company and the National Water Company, are scheduled to take effect on January 1, 2027.

To mitigate the financial impact of these changes, the government will provide a monthly allowance of 500 riyals to several groups, including civil and military employees on service scales, retirees, and eligible family members of deceased retirees under the social insurance system. Additionally, families benefiting from the social security system will receive a monthly support payment of 500 riyals.

The electricity tariff adjustments include a new fixed monthly fee based on circuit breaker capacity, ranging from 70 to 100 riyals for residential sectors, replacing previous meter reading and maintenance fees. Residential consumption rates will rise to 21 halalas per kWh for usage up to 6,000 kWh and 33 halalas for usage exceeding that limit.

Water and sewage tariffs will also see significant changes. For the first residential tier (up to 15 cubic meters), the price will increase from 0.15 riyals to 1.5 riyals per cubic meter. Other tiers will see increases to 3, 6, and 9 riyals per cubic meter depending on consumption levels.

Furthermore, the government is raising minimum wage requirements for the 'Nitaqat' Saudization program. The minimum wage for a Saudi employee to be fully counted toward localization ratios will rise to 5,000 riyals after six months, and subsequently to 6,000 riyals after twelve months.

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King Salman bin Abdulaziz Al Saud · Mohammed bin Salman · National Water Company · Prince Mohammed bin Salman · Saudi Arabia · Saudi Energy Company · Saudi Water National Company

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