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By Abdul Rahman A. Al-Tuwaijri Deputy Minister of Industry & Electricity Kingdom of Saudi Arabia April, 2000 April, 20001.

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Presentation on theme: "By Abdul Rahman A. Al-Tuwaijri Deputy Minister of Industry & Electricity Kingdom of Saudi Arabia April, 2000 April, 20001."— Presentation transcript:

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2 By Abdul Rahman A. Al-Tuwaijri Deputy Minister of Industry & Electricity Kingdom of Saudi Arabia April, 2000 April, 20001

3 RIYADH DAMMAM JEDDAH MAKKAH MADINAH HAIL BAHA NAJRAN TURAIF TABUK ELECTRIC CORP. A R A B I A N ARABIAN SEA R E D S E A EGYPT SUDAN ETHOPIA GULF 2 Before Merge

4 April, 2000 April, 2000 b Electricity services reached 7100 cities and villages. b No. of customers reached 3.4 million b Length of kv network totaled to km. b Length of distribution network (69kv and below) totaled to 210,000 km. totaled to 210,000 km. 3

5 April, 2000 April, 2000 Agricultural (2%) (2%) Industrial (24%) (24%)Governmental (17%) (17%) Commercial (9%) (9%) Residential Residential (48%) (48%)4

6 April, 2000 April, 2000 Year Avg. Annual Growth PeakLoad(M.W.) % Energy EnergyConsumption (M.W.H.) (M.W.H.) 3,826,340 3,826, ,612, ,612, % 15 % Number of Consumers 346, ,1293,400, % 10 % 5

7 April, 2000 April, No. of Customers / Employee Energy sold / capita 5100 kwh kwh No. of Employee % of Saudi

8 April, 2000 April, 2000 b Severe weather b Strong Economy b Low Tariff b Socio-economic Sector Expansions 7

9 April, 2000 April, 2000 Installed Capacity Peak Load Giga Watt 8 * * As stated by the 25-year plan

10 April, 2000 April, 2000 (Base Forecast Scenario) 9 Peak Load (MW) Growth Rate (%) Net Generation (MW) Consumption (GWH) Growth Rate (%) Consumers (000) Growth Rate (%) * Source: 25-year kingdom electrification plan

11 April, 2000 April, 2000 Period Total% Generation % 54 %Transmission % 7% Distribution % 17 % Sub-Trans % 22 %Total % US$=SR

12 April, 2000 April, 2000 US$ = SR 3.75 GENERATION TRANSMISSION DISTRIBUTION Total Total MILLIONS SR 22,786 10,702 5,37238,860 % SECTOR 11

13 April, 2000 April, 2000 Generation Transmission Distribution Total % of Total Self 13,600 4,700 3,200 21, Halalah Fund 9,186 6,002 2,172 17, Total 22,786 10,702 5,372 38, Million of S.R.

14 April, 2000 April, 2000 b SELF-SUPPORTING SECTOR BY :- b TARIFF STRUCTURE b SECTOR RESTRUCTURING AND COMMERCIALIZATION b ALL EXPANSION S TO BE BASED ON ECONOMICS. b ATTRACTING PRIVATE INVESTMENTS. The Huge Future Investments For The Sector, Can be met as the following :- 13

15 A R A B I A N ARABIAN SEA GULF R E D S E A EGYPT SUDAN ETHOPIA April, 2000 April, 2000 MAKKAH RIYADH DAMMAM JEDDAH MADINAH HAIL BAHA NAJRAN TURAIF TABUK 14

16 Control Relationship Investment Bond Ministry of Industry & Electricity Control Relationship Energy Sales in one direction Energy purchase and selling April, 2000 April, Transm- ission Sector Sector Distrib- ution Sector Sector DistributionSector Saudi Electricity Company Independent Independent power producer Major Major Consumers & Consumers & Self-Generation Self-Generation Generation Sector Sector Power Plants Plants Electrical Energy Cost And Tariff Revision Authority

17 April, 2000 April, 2000 Z To be Established During The First Year of SEC. Z An Independent Body. Z The Bylaws of the Commission Will be Recommended by a Ministerial Committee and Approved by Council of Ministers. 16

18 April, 2000 April, 2000 Z Regulate Industry Entry (Licensing). Z Secure Electric Supply (Electrification Plan Implementation). Z Ensure Reasonable Price for Electricity Supply (Tariff). Z Review Periodically The Cost of Production of Electric Energy. Z Ensure Safe Operation of System as Per Approved Technical Standards and Environmental Guidelines. Z Maintain Competition and Regulate Monopolistic Activities. Z Collect and Distribute Information Regarding Industry Performance. Z Ensure Implementation of Energy Conservation Plan. Z Ensure Implementation of Service Performance Targets. 17

19 April, 2000 April, SAUDI ELECTRIC COMPANY Has Officially Started On 30 / 12 / 1420 H. ( 5 /4 / 2000 G.) After Merging All Existing Electric Utilities and General Electricity Corp.

20 April, 2000 April, 2000 The Private-Sector Shall be Allowed to Compete in Establishing and Operating Electric Energy Projects in k.S.A (Such as IPP, BOOT…etc. In Generation Schemes). The Company May Establish or Acquire Subsidiaries Active in The Generation Transmission and, Distribution of Electric Energy. Z Z 19

21 April, 2000 April, 2000 The Company May Establish other Companies, or Enter Into Partnerships With Other Saudi and/or Foreign Companies, Organizations or Bodies That Perform Similar Activities, or That May Assist it to Achieve its Objectives. Z 20

22 April, 2000 April, 2000 The Company Must Allocate Part of its Revenues for R&D of it’s field of activity, Energy Conservation, System Improvements and Environmental Studies. Z 21

23 April, 2000 April, 2000 The Company Shall Train Saudi Manpower in its Field of Activity, and Shall Support Training Programs at Universities and Specialized Institutes, Provided That is Accompanied by a Saudization Program Specifying Categories of Manpower and Required Training Time Period. Z 22

24 April, 2000 April,

25 Z A Continued Comprehensive Program for Energy Conservation to be Formulated by SEC in Coop. With Universities, Institutes and Specialized Centers. Z Ministry of Industry & Electricity (MIE) Review, Approve and Follow up. Z MIE & Ministry of Information to develop a public awareness plan for this program. 24

26 April, 2000 April, 2000 K.W.H Over Over 10000Industrial Agriculture and charitable Societies ( ) Agriculture and charitable Societies (Over 4000) New Tariff Old Tariff

27 April, 2000 April, 2000 Meter Breaker 60 Amps. 100 Amps Amps. Monthly Tariff SR 1,380 SR 3,800 SR 11,400 MeterBreaker Amps. 400 Amps. 400 Amps. Over 400Amps. MonthlyTariff SR,800 SR 18,800 SR 26,600 SR 26,600 + SR 250 per additional KVA 26

28 April, 2000 April, 2000MeterBreaker 60 Amps. 100 Amps. MeterBreaker 60 Amps. 100 Amps. MonthlyTariff(SR) SR 10 SR 15 MonthlyTariff(SR) SR 10 SR 15 MeterBreaker 200 Amps. 300 Amps. MeterBreaker 200 Amps. 300 Amps. MonthlyTariff(SR) SR 21 SR 22 MonthlyTariff(SR) SR 21 SR 22 MeterBreaker 400 Amps. Over 400 Amps. MeterBreaker 400 Amps. Over 400 Amps. MonthlyTariff(SR) SR 25 SR 30 MonthlyTariff(SR) SR 25 SR 30 27

29 April, 2000 April, 2000 Residential Industrial Tariff (Halala/KWH) Expected Avge. Revenue From New Tariff per kwh in KSA 28 Saudi Bahrain Oman Bangladesh Cypress Indonesia Jordan Korea Morocco Pakistan Philippine Syria Tunisia Austria Canada Denmark France German Greece Italy Luxembourg Norway Turkey UK USA

30 April, 2000 April, 2000 Monthly Monthly Consumption (KWH) 1,0002,0003,0004,0005,0006,0007,0008,0009,00010,000 Over 10,000 Old Tariff (SR) ,1601, Halala/ Additional KWH New Tariff (SR) ,1201,4401, Halala/AdditionalKWH increase (%) (%)ZeroZeroZeroZeroZero 9 % 11 % 17 % 24 % 33 % 29

31 April, 2000 April,

32 31 Z THE NEW RESTRUCTURING WAS A MUST. Z BRIGHT FUTURE AND VISION FOR THE SECTOR. Z MOST ECONOMIC METHODS AND PROCEDURES WILL BE APPLIED TO LOWER PRODUCTION AND SELLING UNIT COSTS.

33 April, 2000 April, Z ENABLING THE SECTOR TO BETTER USE OF RESOURCES. Z NEW TARIFFS WILL ENCOURAGE THE CUSTOMERS TO USE THE MOST EFFICIENT EQUIPMENTS, THERMAL INSULATION AND OTHER METHODS OF ENERGY CONSERVATION. Z LOAD MANAGEMENT AND ENERGY CONSERVATION PROCSDURES AND PROGRAMS ARE TARGETS TO BE ACHIEVED.

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