SEC increases profits by a third in Q3

The SEC is profiting from new electricity tariffs.

 The Saudi Electricity Company has announced a 34 percent yoy rise in profits in the third quarter after the state-owned utility hiked tariffs for government, commercial and industrial clients in July this year.

Net profit rose to US$610 million from $460 million last year, the Riyadh-based company said in a statement released to the Saudi stock exchange on Monday. Operating profit in the same period also rose 34 percent to $580 million.

Saudi Arabia may raise electricity tariffs further as it seeks to improve energy efficiency, the industry regulator said this month, reports the Bloomberg news service. The Saudi Electricity and Co-generation Regulatory Authority will seek higher fees for first-time connectivity and capacity usage, Abdullah al-Sheri, the body’s governor said.

Saudi Arabia wants private companies to contribute to the kingdom’s 300 billion-riyal power-capacity expansion plan to help cut subsidy costs. The government spends about 50 billion riyals a year to subsidize fuel needed for power production, al- Shehri said.

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