Adding the electricity sector to the Ministry of Energy is a chance

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Minister of Energy: Structural and regulatory reforms aimed at strengthening the sector and its sustainability

Prince Abdulaziz bin Salman, Minister of Energy, confirmed that the inclusion of the electricity sector in the Ministry of Energy is a historic opportunity, indicating that the details will be clarified today, revealing that there is a ministerial committee formed to develop the electricity sector.

He added: We aim to restructure the electricity sector, and pay attention to the needs of the consumer, explaining that the structural and organizational reforms aim to strengthen the electricity sector and its sustainability.

The minister said: The Electricity Company has not benefited from the service tariff increase.

The Saudi Electricity Company had announced that it had signed an agreement with the government represented by the Ministry of Finance to address the financial obligations owed to the government by the company, in light of the recent financial, structural and organizational reforms in the electricity sector in the Kingdom, which the Ministerial Committee for Restructuring the Electricity Sector worked on.

The company clarified that the agreement aims to address the net financial obligations owed to the government on the company, by converting these liabilities into a secondary financial instrument with an indefinite term, not guaranteed, that is classified under the shareholders ’equity, and not in the category of ordinary shares, and accordingly, it will not have any effect on Shareholder ownership percentage in the company.

The Chairman of the Board of Directors of the Saudi Electricity Company, Dr. Khalid bin Salih Al-Sultan said: The agreement and other financial, structural and organizational reforms for the electricity sector in the Kingdom constitute a milestone and an achievement that was the fruit of the great efforts made by the Ministerial Committee for Restructuring, under the supervision and support of the Supreme Committee for Energy Mix Affairs to produce electricity and enable The renewable energy sector, with the cooperation of the concerned authorities within the electricity sector integration system, as a number of financial and structural challenges that the sector and the company faced in the past were addressed, in order to improve the quality of services provided to consumers, and to enhance the efficiency and reliability of the electricity sector, and its ability to provide the basic environment for the sector. Transmission and distribution in order to raise the efficiency of generation and achieve the objectives of the optimal energy mix for the production of electricity, in line with the goals of the Kingdom’s Vision 2030.

He explained that the signing of the agreement and the implementation of the approved reforms, which include enabling the electricity sector to benefit from the electricity consumption tariff by canceling the government fee imposed on the company, and enhancing its ability to fulfill its obligations and fulfill its dues, which would enhance the company’s financial position, and increase its ability to Funding its projects to enable it to implement its plans to contribute to building a stronger, more sustainable and diversified electricity sector, and it will also enable the company to distribute profits to all shareholders.

Minister of Energy
Prince Abdulaziz bin Salman

Abdulaziz bin Salman: The inclusion of the electricity sector in the Ministry of Energy is a historic opportunity

Previously

Prince Abdulaziz bin Salman, Minister of Energy, confirmed that adding the electricity sector to the Ministry of Energy is a historic opportunity, indicating that the details will be clarified today, revealing that there is a ministerial committee formed to develop the electricity sector.

He added: We aim to restructure the electricity sector, and pay attention to the needs of the consumer, explaining that the structural and organizational reforms aim to strengthen the electricity sector and its sustainability.

The minister said: The Electricity Company has not benefited from the service tariff increase.

The Saudi Electricity Company had announced that it had signed an agreement with the government represented by the Ministry of Finance to address the financial obligations owed to the government by the company, in light of the recent financial, structural and organizational reforms in the electricity sector in the Kingdom, which the Ministerial Committee for Restructuring the Electricity Sector worked on.

The company clarified that the agreement aims to address the net financial obligations owed to the government on the company, by converting these liabilities into a secondary financial instrument with an indefinite term, not guaranteed, that is classified within the shareholders ’equity, and not in the category of ordinary shares, and accordingly, it will not have any effect on Shareholder ownership percentage in the company.

The Chairman of the Board of Directors of the Saudi Electricity Company, Dr. Khaled bin Saleh Al-Sultan, said: The agreement and other financial, structural and organizational reforms for the electricity sector in the Kingdom constitute a milestone and an achievement that was the fruit of the great efforts made by the Ministerial Committee for Restructuring, under the supervision and support of the Supreme Committee for Energy Mix Affairs to produce electricity and enable The renewable energy sector, with the cooperation of the concerned authorities within the electricity sector integration system, as a number of financial and structural challenges that the sector and the company faced in the past were addressed, in order to improve the quality of services provided to consumers, and to enhance the efficiency and reliability of the electricity sector, and its ability to provide the basic environment for the sector. Transmission and distribution in order to raise the efficiency of generation and achieve the objectives of the optimal energy mix for the production of electricity, in line with the goals of the Kingdom’s Vision 2030.

He explained that the signing of the agreement and the implementation of the approved reforms, which include enabling the electricity sector to benefit from the electricity consumption tariff by canceling the government fee imposed on the company, and enhancing its ability to fulfill its obligations and fulfill its dues, which would enhance the company’s financial position, and increase its ability to Funding its projects to enable it to implement its plans to contribute to building a stronger, more sustainable and diversified electricity sector, and it will also enable the company to distribute profits to all shareholders.

16 November 2020 – 1 Rabi` al-Thani 1442

01:52 PM


Minister of Energy: Structural and regulatory reforms aimed at strengthening the sector and its sustainability

Prince Abdulaziz bin Salman, Minister of Energy, confirmed that the inclusion of the electricity sector in the Ministry of Energy is a historic opportunity, indicating that the details will be clarified today, revealing that there is a ministerial committee formed to develop the electricity sector.

He added: We aim to restructure the electricity sector, and pay attention to the needs of the consumer, explaining that the structural and organizational reforms aim to strengthen the electricity sector and its sustainability.

The minister said: The Electricity Company has not benefited from the service tariff increase.

The Saudi Electricity Company had announced that it had signed an agreement with the government represented by the Ministry of Finance to address the financial obligations owed to the government by the company, in light of the recent financial, structural and organizational reforms in the electricity sector in the Kingdom, which the Ministerial Committee for Restructuring the Electricity Sector worked on.

The company clarified that the agreement aims to address the net financial obligations owed to the government on the company, by converting these liabilities into a secondary financial instrument with an indefinite term, not guaranteed, that is classified within the shareholders ’equity, and not in the category of ordinary shares, and accordingly, it will not have any effect on Shareholder ownership percentage in the company.

The Chairman of the Board of Directors of the Saudi Electricity Company, Dr. Khaled bin Saleh Al-Sultan said: The agreement and other financial, structural and organizational reforms for the electricity sector in the Kingdom constitute a milestone and an achievement that was the fruit of the great efforts made by the Ministerial Committee for Restructuring, under the supervision and support of the Supreme Committee for Energy Mix Affairs to produce electricity and enable The renewable energy sector, with the cooperation of the concerned authorities within the electricity sector integration system, as a number of financial and structural challenges that the sector and the company faced in the past have been addressed, in order to improve the quality of services provided to consumers, and to enhance the efficiency and reliability of the electricity sector, and its ability to provide the basic environment for the sector Transmission and distribution in order to raise the efficiency of generation and achieve the objectives of the optimal energy mix for the production of electricity, in line with the goals of the Kingdom’s Vision 2030.

He explained that the signing of the agreement and the implementation of the approved reforms, which include enabling the electricity sector to benefit from the electricity consumption tariff by canceling the government fee imposed on the company, and enhancing its ability to fulfill its obligations and fulfill its dues, which would enhance the company’s financial position, and increase its ability to Funding its projects to enable it to implement its plans to contribute to building a stronger, more sustainable and diversified electricity sector, and it will also enable the company to distribute profits to all shareholders.





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