Saudi SEC Shake-Up OKd

Saudi Electricity Company (SEC) shareholders voted on 18 December in favor of the formation of a power generation subsidiary that appears to be the second step in a government-led program to break up its generation business into four units for sale to private energy firms.

SEC announced the result of the vote on the Saudi Stock Exchange (Tadawul), where 18.8% of its shares are traded. The company’s main shareholder is Riyadh’s PIF sovereign wealth fund with 74.3%, while state petroleum firm Aramco holds 6.9% ( MEES, 30 November ).

The Saudi government’s Electricity and Cogeneration Regulatory Authority (Ecra) has given no indication of the schedule for the SEC break-up. However, last year Ecra took the first step by licensing SEC as ‘principal buyer’ of electricity under another subsidiary – Saudi Company for Energy Procurement – to buy and sell electricity in the privatized Saudi electricity sector ( MEES, 14 September ). (CONTINUED - 356 WORDS)