BACKGROUND ON CORE BUSINESS
The principal activity of Saudi Electricity Company is the generation, transmission, and distribution of electricity within the Kingdom - the largest economy in GCC. It is the leading producer of electricity and sole owner of the entire transmission and distribution network throughout the Kingdom, serving all types of customers.
Key Facts:
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Establishment
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Ownership
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Governance
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State Monopoly
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Established by Royal Decree M/16 in December 1999 bringing together all former public utility joint stock companies into one entity.
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Direct government ownership of 74.3% with a further 6.9% owned through Saudi Aramco. Remaining 18.8% by the general public in the Kingdom, both by institutions and retail investor.
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Government appoints 5 members to SEC’s 9 member board including the Chairman, and Saudi Aramco appoints 1 board member, and 3 independent members representing minority investors are elected by AGM
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SEC maintains a monopoly position in Transmission and Distribution across the Kingdom and owns and operate majority of Generation capacity in the kingdom.
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Policy Vehicle
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Facilitates Government
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Employment
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Tariffs
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SEC is involved in the promotion of Saudi’s wider industrialization and development policies including powering the new mega projects and economic and industrial cities.
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SEC fronts government initiatives in the electricity sector, e.g. Gulf Cooperation Council International Authority (GCCIA) and the proposed interconnection project with Egypt
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SEC is one of Saudi Arabia’s largest employers with a current staff of 37,769 of whom 89% are Saudi nationals. |
Government continues to influence tariff setting with a significant subsidy applied to residential tariffs – at year end 2015, the tariff increased on all customer categories in an interim step of the government's plan to reach commercial tariff prices in five years.
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Strong Government Support
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The Government of Saudi Arabia, recognizing the importance of SEC’s mandate to provide electricity throughout the entire Kingdom, has been extending strong financial support to SEC in the form of interest-free loans, deferral of payables to Government and waiver of dividends on Government shareholding.
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Snapshot of Growth in SEC's Core Business Since 2000:
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2000
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2015
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25,790
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Available Generation Capacity
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69,154
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22,060
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SEC Generation Capacity
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50,171
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21,673
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Peak Load (MW)
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62,260
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114,161
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Sold Energy (GWh)
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285,674
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3,622,391
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Number of Customers
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8,094,248
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29,631
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Transmission Network length (circuit Km)
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67,446
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226,663
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Distribution Network length (circuit Km)
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537,301
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30,028
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Manpower
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37,769
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Generation Overview:
Power generation is considered as the company’s principal activity. Its mission is to reliably energize the entire network and meet the growing demand while optimizing resources. Its aim is to optimize the generation mix and reduce the cost of electrical energy production thereby realizing one of company’s main objectives. SEC considers its Generation to be the main pillar of its core business and even after the liberalization of the Generation Sector, SEC’s generation comprises 74% of the total energy available for sale in the Kingdom, across different categories of customers.
The activity plans to focus on the operation and maintenance of power plants and enhancing their capacity to meet the growth in demand for electric power.
Development of Generation Capacity (MW) During (2000 – 2015)
Development of SEC's Generation Capacity (MW) During (2000 – 2015)
The National Grid SA Overview:
The Saudi electricity company continues to maintain a monopoly position in transmission through the separately established and wholly owned National Grid Company, which began operation on 1/1/2012. The functions of the National Grid include operating and maintaining the electric grid voltage 110/380 KV, guaranteeing high reliability and stability to ensure the delivery of electric power to loads centers in all parts of the kingdom of Saudi Arabia, enhancing the electrical grid in the transmission stations and connecting lines of high voltage 110/132 KV through multiple stages including the activity of planning, designing and implementing of projects, and ensuring the continuity of program development and operation in various fields.
The company’s mission comprise operating the electrical system and transmitting electrical energy from the production sites to its consumptions centers, studying the loads expectations and developing plans to strengthen the electrical system to meet the expected loads. In addition, the company is committed to communicating with key participant to identify and serve their needs by coordinating the independent power producers and signing energy purchase and exchange agreements, and by representing the company as a buyer from the independent producers.
Development of Transmission Network Length (ckm) During (2000 – 2015)
Development of Peak Load (MW) During (2000 – 2015)
Distribution and Customer Services Overview:
The SEC’s distribution business is responsible for the medium and low voltage power lines that connect high voltage transmission substations to local substations and the low voltage lines that provide electricity from local substations to end-users. The distribution business is also responsible for metering, billing, collection of payments and electrical service connections in respect of electricity supplied to end-users.
This is a major activity whose functions consists of receiving electric power from the transmission networks and delivering a safe and highly reliable electricity supply. This activity also issues and distribute electricity bills to the customers and executes its annual plans and programs to provide high levels of service quality through the use of the latest technologies and facilitates the procedures for obtaining services.
Development of Customer Base During 2000-2015 (in millions)
Development of Energy Sold (TWH) During 2000-2015
