Saudi Arabia raises electricity and water prices and approves a monthly subsidy of 500 riyals for citizens

Under the new tariff, the price of residential electricity consumption up to 6,000 kilowatt-hours per month will increase from 18 to 21 halalas per kilowatt-hour, an increase of 16.7%, while the price for consumption exceeding this limit will rise from 30 to 33 halalas, an increase of 10%.

The amendments include imposing fixed monthly fees for homes ranging between 70 and 100 riyals, depending on the circuit breaker capacity, replacing the previously applied meter reading, maintenance, and billing fees.

In the water sector, the amendments include consumption prices and sewage services for residential, non-residential, and government sectors, in addition to reorganizing consumption brackets and fixed monthly fees.

According to the new tariff schedules published in Saudi media, citing the National Water Company, the total price for water and sewage in the first residential bracket, up to 15 cubic meters per month, increases from 0.15 riyals to 1.5 riyals per cubic meter, while in the second bracket, for more than 15 and up to 30 cubic meters, it increases from 1.5 to 3 riyals per cubic meter.

The tariff is 6 riyals per cubic meter in the third bracket, for consumption exceeding 30 and up to 45 cubic meters, and rises to 9 riyals for quantities exceeding 45 cubic meters. Fixed monthly fees for small residential meters also start from 20 riyals for water and 10 riyals for sewage, varying according to meter specifications and services provided.

The percentage increases in consumption brackets do not mean the total subscriber bill will rise by the same percentage, as the bill is calculated progressively based on the volume of consumption, with fixed fees added to it.

Monthly subsidy and adjustments to Saudi wages

The directives include an increase in a monthly allowance of 500 riyals for civil and military employees covered by civil service scales and operational program items, retirees, and family members of deceased subscribers or retirees subject to the Social Insurance system, in accordance with the regulating mechanisms and controls.

The directives also approved a monthly subsidy of the same value for families benefiting from social security, with the aim of mitigating the financial impact resulting from the rise in electricity and water costs.

In the private sector, it was decided to raise the minimum wage required to count a Saudi worker fully within the localization percentages in the "Nitaqat" program to 5,000 riyals, with the decision to be implemented six months after the start date of the procedure, then the limit will rise to 6,000 riyals 12 months after the implementation of the first increase.

This amendment does not constitute the imposition of a general minimum wage in all private sector establishments, but rather determines the wage level required to count a Saudi worker fully within the localization percentages.

The measures combine the adjustment of basic service tariffs with the provision of direct financial support to categories of citizens and the raising of wage requirements linked to localization, while the actual impact on families depends on the volume of change in bills and the extent of their benefit from the subsidy.