SEC Set For Split By Year-End

Riyadh is splitting up state power utility SEC in the search for increased efficiency and outside investment. Subsidy cuts are curbing power demand.

Saudi Electricity Company (SEC) chairman Salih al-Awaji says the company will be broken up by the end of 2016 as part of government’s drive to increase efficiency among the kingdom’s utilities. “We expect to complete the planned privatization of assets this year,” he told Saudi satellite TV channel Al Arabiya on 31 August.

The announcement confirms the decision announced earlier by ‘Abd Allah al-Shihri, governor of the government’s Electricity and Cogeneration Regulatory Authority (Ecra), that “by the end of 2016 we will see the creation of four power generation companies from the assets of SEC.”

Mr Shihri said that equity in the four new generating companies could be offered to local and international power companies as well as to Saudi private investors by means of share offering on the Saudi Stock Exchange (Tadawul). (CONTINUED - 679 WORDS)