Saudi Electricity Co to be split up by year-endby Ashleigh McGinley on Feb 25, 2016
Saudi Electricity Co (SEC) is set to be split into several firms this year in a bid to increase efficiency, a senior official told Al Arabiya television.
Abdullah al-Shehri, governor of the Electricity & Co-Generation Regulatory Authroity, said: "By the end of 2016, we will see the creation of these four power generation companies that will be made from the assets of SEC."
The process will be open to competition, with stakes in the new firms being offered either to local citizens through offers on the stock market - or to local or international corporate partners, al-Shehri added.
Saudi Arabia has been considering the reform since at least 2009, but political pressure for such change has increased greatly since oil prices began to plunge in 2014, straining state finances.
The government is now laying plans to revamp much of the state sector through steps such as privatisation, Retuers reported.
"It will be a decision made by a ministerial committee that is tasjed with looking at privatisation. When these companies exist, and regulations are ready for the private sector, there will be a huge return for the country and improvement in services," Shehri told Arabiya.
- Saudi: Dar Al Arkan's Q3 net profit up 21%
- Saudi, Egypt sign $1bn Suez steel complex deal
- UAE's EGA opens container terminal in Guinea
- Saudi: Construction sector poses risk to banks
- Saudi's ACWA Power to lead coal-fired plant scheme
- Saudi residential segment undersupplied in 2016
- DSI actively engaged to resolve $53m Saudi dispute
- Siemens presents metro train to Riyadh authority
- Saudi Arabia tests rail link from Riyadh to border
- Top 10 GCC contract wins - September 2016