13/03/2010
Report issuance which deals with the positive and negative impacts of the Electricity Variable Tariff.
A special report examined the positive results and negative effects of electricity charges changing on non-residential sector, according to the high level of consumption between summer and winter months.
The report issued by the Information Center of Asharqia Chamber said that there is positive effects of any modification includes the electricity tariff for industry and the consumer, amendment aimed mostly at reducing the losses borne by the electricity companies that affect their projects, because the cost of production is higher than the actual price obtained from consumers, Thus, the application of variable and temporariness off-rush hours so as to impose a higher rush time pricing and a discounted rate off-peak times, rather than the fixed tariff currently in force, and to assist the repatriation of the joint to its load off-peak times will help to reduce the value of monthly invoices, and it comes to shift loads during the summer months, and rationalize consumption and reduce peak loads and better use of capacities of equipment for older participants.
The report said the increase in consumption at peak times lead to increased costs of building plants large and expensive to cover the loads for a few hours during the year, while most of these stations remain idle the rest of the year, and give the Regulatory Authority of Electricity & Cogeneration increase in its powers to achieve speed to respond to the requirements and conditions of industry electricity, and encourages the older industrial and commercial participants to reduce the loads during rush hours.
But the report said that there are some negatives represented by tariff increasing for the industrial and commercial consumption categories, will extend its negative affects to the final consumer in higher product prices due to high production costs, and may harm the national industry sector does not achieve the desired interest in going out over the small and medium businesses in the manufacturing, which is a major employer of labor in Saudi Arabia, in addition to the young consumers damage and the extension of a double major impact on important economic sectors, and may reduce the competitiveness due to rising cost them .. And increase the rate of unemployment, when the use of these sectors to reduce the number of their employees to reduce costs, as reflected negatively on the rate of its growth.
The report said that residential consumption of electricity during the year 2008 was 96,687,059 megawatt / hour, more than 53.9% of the total electricity consumption in Saudi Arabia and in the light of the survey, the monthly bills of residential consumption in the UK found that about 10% of participants (436,000 common ), on average, do not consume any energy, although 33.3% of the actual consumers (1,360,000 subscribers) does not exceed the amount of their bills monthly average during the year of the amount of fifty $ 50 .. The 26.7% of the actual consumers (1,076,000 subscribers) varies the amount of their bills monthly average during the year between fifty-50 and SR 100. Roughly 34.4% of the actual consumers (1,379,000 subscribers) varies the amount of their bills monthly average during the year between SR 100 SR 500, and in this area, about 3.3% of the actual consumers (115,000 subscribers) varies the amount of their bills monthly average during the year between SR 500 and SR 1000. The actual consumers who increases the amount of their bills monthly average during the year the sum of one are the only Real (91,000 subscribers), accounting for 2.2% of the total actual consumer consumption, residential sector, who number (4,021,000 subscribers).
Given all this, it is clear that the amount of average monthly bill for consumption during the year to about 95% of residential consumers, the actual (i.e., 3,930,000 common) in the Kingdom does not exceed the amount of SR 500. With the observation that the amount of your monthly bill testifies greatly from month to month depending on the changing seasons of the year, which is higher than the rate in the summer and fall a lot with him in the winter in most parts of the Kingdom.
The report noted that the system provides electricity in the kingdom to conduct a Regulatory Authority of Electricity and dual output periodic review of tariff structure, based its recommendations to the Prime Minister .From the basis of this mandate, the Authority over the years 1426-1428 started a comprehensive study on the process of designing the tariff structure and systems review and under the results of the study developed the new structure for non-residential tariff consumption only, while maintaining the tariff of residential consumption, as it is at present, without a change .. He pointed out that the proposed tariff for consumption of non-residential designed to address the chronic problem faced by the electricity industry, a problem of low income necessary to meet its financial requirements, operational and capital.
The report said that the central idea in the formulation of the proposed structure for non-residential consumption tariff is a tariff access to the preparation of easy application, ensure the provision of adequate income to each of the major components of the industry, as: generation, transmission, distribution, and contain incentives to increase the efficiency of service providers so that linked to the income of each licensee in the electrical activity of the extent to achieve the performance criteria set by the Authority for Electricity Regulation, and dual output.
