SEC to begin restructuring this month
State-controlled firm will split to encourage competition
The Saudi Electricity Company will launch a subsidiary this month as part of plans to split the state-controlled firm into six separate entities, aimed at encouraging competition.
The SEC will remain a holding company, responsible for ownership of the six companies which will include four power generation firms, a transmission firm and a firm responsible for transmission.
The restructuring exercise is expected to cost in the region of $53.3M, and in a report by Reuters, SEC’s CEO Ali Bin Saleh al-Barrak commented: “As a result, the Saudi market will be competitive, which will help to increase productivity, efficiency and attract investment to meet high demand.”