SEC - Smart metering to lead to tariff increases

Smart meters are instrumental for a smart grid, says SEC CEO Al Barrak.

 Smart metering will have to be rolled out across Saudi Arabia before tariffs for households are increased, said the head of the Saudi Electricity Company (SEC) on Tuesday.

The majority state-owned power and water provider increased tariffs to industrial and large commercial customers in July this year, and has introduced variable tariffs to encourage the use of power outside of peak demand hours.

Smart metering, which informs both seller and consumer of electricity about consumption almost in real time, has thus become a requirement for about 2,000 corporate users.

For tariff increases to become applicable to private customers, who currently enjoy subsidised rates, smart metering pilot programmes being rolled out in some cities would have to be extended to cover the entire country.

“We don’t want to face the consumer with a cost effective tariffs without giving him the tools to manage his consumption,” said Ali Saleh Al Barrak, the SEC’s president and CEO.

“We’ve made some pilot projects, a government quarter in Riyad is in the final stages today,” he added.

A roll out of smart metering is part of the first phase of the implementation of the smart grid, said Al Barrak, who spoke at the Smart Electricity World conference held in Dubai.

The CEO gave no precise timeline for the rollout, saying only that it will be completed in “a few years.”

Advertisement

FEATURED COMMENT Please click here to comment on this article