RIYADH: The Saudi Cabinet approved dividing power tariffs for electricity intensive establishments into two categories, Argaam reported citing the Kingdom’s official gazette.
The first category includes sectors in which the rate of electricity to operating costs is 20 percent or more.
The second category includes the sectors in which the ratio of electricity costs to operating costs ranges between 10 percent and 19.9 percent.
In both the categories operating costs do not include raw materials.
The sectors that are excluded from this new tariff plan are government, residential, charitable, cooperative institutions and societies, private health and educational facilities.
Tariff for the heavy consumption of electricity for the abovementioned categories does not include value-added tax.