By virtue of the powers granted to the Water and Electricity Regulatory Authority (the Authority) in Articles (4) and (12) of the Electricity System issued by Royal Decree No. (M/44) dated 16/5/1442 AH, and Articles (4) and (5) of the Authority's Regulation issued by Council of Ministers Decision No. (263) dated 14/5/1442 AH, and Council of Ministers Decision No. (111) dated 14/2/1443 AH, and Council of Ministers Decision No. (361) dated 26/5/1444 AH, and by virtue of the Authority's Board of Directors Decision No. (03/43) dated 2/5/1443 AH, and the Authority's Board of Directors Decision No. (01/44) dated 28/5/1444 AH, the Authority has issued this document.

Based on the Decision of the Council of Ministers issued under number (111) dated 14/2/1443 AH, which includes the approval for the introduction of a heavy electricity consumption tariff targeting the sectors qualified by a Committee formed under the chairmanship of the Ministry of Energy, with the membership of: (Ministry of Finance, Ministry of Investment, Ministry of Economy and Planning, Water and Electricity Regulatory Authority, and Local Content and Government Procurement Authority), referred to in this document as (the Committee). The establishments eligible for the heavy electricity consumption tariff will be qualified after the Committee identifies the eligible sectors, as stated in the aforementioned decision. The Committee is responsible for periodically reviewing those sectors and inviting representatives from relevant entities when discussing the activities or sectors under its supervision.
Whereas the aforementioned Decision of the Council of Ministers has stipulated that establishments must meet a number of conditions to apply the heavy electricity consumption tariff, and assigned the Authority the task of issuing the rules, regulations, and necessary executive procedures for the application of this tariff.
Whereas the Decision of the Council of Ministers issued under number (361) dated 26/5/1444 AH, which amended item (Sixth) of the Decision of the Council of Ministers numbered (111) dated 14/2/1443 AH, as mentioned above, stipulates that the application of the heavy electricity consumption tariff for existing establishments shall commence from 1/1/2023 AD, the Authority has issued this document to regulate the application of the aforementioned tariff in accordance with its Board of Directors' Decision number (01/44) dated 28/5/1444 AH.

3-1 The terms and phrases defined in the Electricity Law, or the Implementing Regulation of the Electricity Law concerning the tasks of the Water and Electricity Regulatory Authority, or the organization of the Water and Electricity Regulatory Authority, or the Electric Service Provision Guide (the Evidence) shall have the same meanings as those stated in this document unless the context requires otherwise.

3-2 The following terms and phrases shall have the meanings indicated next to each when used in this document, unless the context requires otherwise:
The Authority: Water and Electricity Regulatory Authority.
Electricity Service Provider: Any person holding a valid license issued by the Authority that permits them to engage in the activities of electricity distribution and retail sale.
The Center: Saudi Energy Efficiency Center.
The Evidence: The Electric Service Provision Guide issued by the decision of the Water and Electricity Regulatory Authority (formerly the Electricity and Co-Generation Regulatory Authority) No. (46/430) dated 1/7/1430 AH, and its amendments.
The Document: This document titled «Tariff for Intensive Electricity Consumption: Rules, Regulations, and Implementing Procedures».
The Tariff: The approved financial counterpart for intensive electricity consumption.
Eligible Sectors: The list of sectors eligible for the intensive electricity consumption tariff approved by the committee formed by the Council of Ministers Decision No. (111) dated 14/2/1443 AH.
Eligible Activity: An activity belonging to one of the eligible sectors where the average percentage of electricity cost for the activity relative to operating costs excluding raw material costs is higher than (10%).
Eligible Consumer: Any person supplied with electricity service for the purpose of feeding the consumption of their establishment, subject to the conditions of the intensive electricity consumption tariff as outlined in this document.
Existing Establishments: Establishments eligible for the application of the intensive electricity consumption tariff that had their electricity supply initiated before January 1, 2023.
New Establishments: Establishments eligible for the application of the intensive electricity consumption tariff that have their electricity supply initiated from January 1, 2023, onwards.
Eligibility Period: The period during which the eligible consumer is entitled to the tariff, as detailed in Chapter Eight of this document.
Annual Electrical Load Factor: The average annual electrical load divided by the maximum hourly load during the year.
Electrical Load Factor for a Specific Period: The average electrical load for that period divided by the maximum hourly load during that period.
Audit Methodology: The mechanism followed to audit the operational cost data of the establishment, including auditing the percentage of electricity cost for the establishment relative to operating costs excluding raw material costs, as detailed in Chapter Seven of this document.
Service Provider Portal: The portal designated for applying for eligibility for the application of the intensive electricity consumption tariff with the electricity service provider.
Cost Calculation Model: A mathematical model that calculates the average percentage of electricity cost to operating costs excluding raw material costs for eligible activities or sectors.
Violations Committee: The committee responsible for reviewing and adjudicating violations stipulated in Article Nineteen of the Electricity Law.
Raw Materials: The unprocessed or partially processed materials and resources that must be available specifically for the manufacturing and installation of the sold products or provided services.
Electricity Cost: The cost of electricity consumed from the network of the electricity service provider according to the consumption category tariff outlined in the Evidence.

• 4- 1 The Authority is the final reference in interpreting any text or provision contained in this document or when there is a conflict between it and any other regulatory documents.

• 4- 2 The consumer must:

  • 4- 2- 1 Comply with all laws, regulations, and any other related statutory or regulatory requirements.

  • 4- 2 -2 Provide all necessary data and information when applying for tariff implementation as outlined in this document.

  • 4 -2- 3 Immediately notify the electricity service provider of any change that may affect his compliance with the qualification requirements.

• 4- 3 The electricity service provider must:

  • 4 -3- 1 Comply with all laws and regulations, adhere to approved technical standards, and any other related regulatory requirements approved by the Authority.

  • 4 -3 -2 Ensure all consumer rights stated in this document and other related laws and regulations.

• 4- 4 In the event of a complaint regarding any matter related to this document or its implementation or any aspect related to the tariff, the consumer has the right to file a complaint with the electricity service provider, in accordance with the consumer complaint handling procedures approved by the Authority. If a satisfactory resolution to the complaint is not reached between the electricity service provider and the consumer through these procedures, either party has the right to escalate the complaint to the Authority for a decision.

5- 1 The tariff is applied to establishments operating in qualified activities or sectors and belonging to industrial, commercial, and agricultural consumption categories - as determined by the committee - through the consumer's request to apply the tariff to their establishment.

5- 2 The intensive electricity consumption tariff for establishments is as stated in the annex, in two categories:

5 -2- 1 First category:

Establishments operating in activities or sectors where the percentage of electricity cost to operational costs without raw material costs is (20%) or more.

5 -2- 2 Second category:

Establishments operating in activities or sectors where the percentage of electricity cost to operational costs without raw material costs is between (10%) and (19.9%).

5- 3 The tariff is applied to the qualified consumer according to the establishment category as stated in the annex, and the tariff obtained by the establishment does not exceed the tariff of the category it belongs to.

• 6- 1 The consumer is considered eligible to apply the intensive electricity consumption tariff to his facility after submitting a request to obtain the tariff and meeting all the following conditions:

  • 6- 1- 1 The consumer must have a valid license or permit to practice an activity belonging to one of the eligible sectors issued by the competent government agency, taking into account the following:

    • 6- 1- 1- 1 In the event of the expiration or cancellation of the license or permit to practice the activity for any reason, the consumer is obligated to notify the electricity service provider immediately and within a period not exceeding five (5) working days, and the electricity service provider must adjust the consumption category from the date of expiration or cancellation of the license or permit according to the new activity of the consumer as approved in the guide.

    • 6 -1-1- 2 The electricity service provider must verify that the consumer's activity - when applying for the tariff - matches his registered activity in the Ministry of Commerce's database according to the procedures approved by the electricity service provider.

  • 6 -1- 2 The facility must belong to an eligible activity or sector, taking into account the following:

    • 6 -1- 2- 1 The electricity service provider must verify compliance with this condition by ensuring the presence of the consumer's activity within the eligible activities or sectors provided to him through the cost accounting model.

  • 6 -1- 3 The energy efficiency level of the facility must comply with the standards set by the center, taking into account the following:

    • 6 -1 -3- 1 The consumer, when submitting the request to the electricity service provider, must commit to completing the center's requirements related to energy efficiency within the time period specified by the center.

    • 6- 1 -3- 2 The electricity service provider must provide the center with consumer data, including the facility's name, activity, contact information, and electricity consumption data for the previous year.

    • 6 -1 -3- 3 The center determines the requirements for the consumer based on the facility's activity and consumption volume.

    • 6 -1 -3- 4 The center has the right to grant conditional approval or grant exceptions for some activities from applying some energy efficiency requirements.

    • 6- 1 -3- 5 The center communicates with all eligible consumers to follow up on the implementation of the requirements within the time period specified by the center.

    • 6- 1- 3 -6 The center notifies the electricity service provider of the consumer's compliance or non-compliance before the end of the second phase referred to in paragraph (9-1-2).

    • 6 -1- 3 -7 The electricity service provider must provide the center with the data referred to in paragraph (6-1-3-2) for the eligible consumer annually.

    • 6 -1- 3 -8 The electricity service provider must verify the presence of the center's approval.

    • 6 -1- 3 -9 If the consumer does not meet the center's requirements within the specified time period, the electricity service provider is notified to adjust the consumption category as outlined in the guide, and to recalculate the consumption bill value for the period of benefiting from the tariff retroactively according to the adjustment.

  • 6 -1 -4 The consumer must have dedicated and independent electricity consumption meters for the eligible activity for the purpose of measuring consumption and the electrical load factor in coordination with the electricity service provider and according to the provisions of the guide.

  • 6 -1 -5 The annual electrical load factor for electricity consumption in the consumer's facility must not be less than the qualifying limit (80%), taking into account the following:

    • 6 -1 -5 -1 Compliance with the condition is verified by the electricity service provider through consumption data for the previous twelve months, so that the annual electrical load factor for the facility does not fall more than (5%) below the qualifying limit (80% ), which is equivalent to a load factor of (76%).

    • 6 -1- 5 -2 If the necessary data to verify the condition is not available to the electricity service provider at the time of application, the consumer is exempt from this condition.

    • 6 -1- 5 -3 If the tariff is applied to the consumer and he achieves an annual load factor lower than the qualifying load factor (80%) he must pay the value of the additional electricity consumption required to meet this condition according to the intensive electricity consumption tariff.

    • 6 -1- 5- 4 In the case of a consumption period of less than (12) months resulting from the end of the tariff application eligibility period or the consumer being considered ineligible, the electrical load factor for that period is calculated and is equivalent to the annual electrical load factor.

    • 6 -1- 5 -5 During the annual verification of the conditions referred to in paragraph (6-4), if it is found that the consumer's annual electrical load factor falls more than (5%) below the qualifying load factor (80%) - i.e., less than a load factor of (76%) - during the tariff application period, the consumer is not eligible to continue applying the tariff due to the absence of one of the conditions, and the electricity service provider must adjust the consumption category as outlined in the guide, with the consumer obligated to pay the value of the electricity consumption quantity according to paragraph (6-1-5-3) for the previous period.

  • 6- 1 -6 The consumer must send the audited financial data of his facility annually to the cost accounting model during the second quarter, indicating the percentage of electricity consumption cost to the operational costs excluding raw materials for the facility.

    • 6 -1 -6 -1 The financial data must be audited by an auditor accredited by the Saudi Organization for Chartered and Professional Accountants (SOCPA) for the following data:

      • 6 -1 -6- 1-1 The operational costs of the facility.

      • 6- 1- 6 -1 -2 The cost of electricity consumption for the facility.

      • 6 -1- 6 -1 -3 The cost of raw materials used.

    • 6- 1 -6 -2 The consumer sends the data referred to in paragraph (6-1-6-1) to the cost accounting model through the designated website.

    • 6 -1- 6 -3 The cost accounting model notifies the facility in case of non-compliance and reminds it to send that data.

    • 6 -1 -6 -4 The cost accounting model notifies the electricity service provider of the excluded facilities in case of non-compliance with sending that data.

• 6 -2 In case the consumer provides incorrect or misleading data or information, the following must be taken:

  • 6 -2 -1 The electricity service provider must adjust the consumption category as outlined in the guide and recalculate the consumption bill value for the period of benefiting from the tariff retroactively according to the adjustment.

  • 6 -2-2 He is referred to the Violations Committee to consider imposing the appropriate penalty.

• 6 -3 The consumer must notify the electricity service provider immediately of any change that may affect his fulfillment of the qualification conditions mentioned in this chapter, and any delay in notifying the electricity service provider does not exempt the consumer from applying the due tariff to him as outlined in the guide from the date of the change affecting his fulfillment of the qualification conditions.

• 6 -4 The electricity service provider must verify annually the compliance of the eligible consumer with all the required conditions to ensure the continuity of applying the tariff, and the electricity service provider is obligated to adjust the consumption category as outlined in the guide from the date of non-compliance with any of the qualifying conditions, and the consumer has the right to reapply for the tariff during the eligibility period outlined in Chapter Eight and according to the application steps outlined in Chapter Nine whenever these conditions are met again.

• 7 -1 Audits are conducted on eligible consumers for the tariff and selected according to the following criteria:

  • 7 -1-1 If one of the eligible activities for the tariff includes a single qualifier, it is selected for auditing its operational cost data.

  • 7 -1 -2 In the case where there are two qualifiers for the same activity, the audit is conducted on the data of the qualifier with the highest ratio of electricity cost to its operational costs (excluding raw materials).

  • 7 -1 -3 In the case where there are three or more qualifiers for the same activity, the audit is conducted on the data of those who have a standard score (Z) higher than (1). The standard score (Z) for each applicant is calculated by determining the difference between the ratio of electricity cost for their establishment to its operational costs (excluding raw materials) and the average of that ratio for all applicants in the same activity, divided by the standard deviation of that ratio for the applicants, according to the statistical equation below:

    • Standard Score (Z) = (% Electricity Cost - Average Electricity Cost)
                                        ---------------------------------

    •                                   Standard Deviation

  • 7 -1 -4 An audit may be conducted on any of the applicants when necessary.
     

• 2-7 The cost calculation model notifies the service provider portal of the following:

  • 7 -2 -1 A list of eligible activities or sectors of the first or second category.

  • 7 -2-2 A list of excluded establishments.
     

• 7 -3 Through the cost calculation model, if there is a discrepancy between the electricity cost share input from the establishment and the financial statements, the applicant is rejected and the average electricity cost from the operational costs of the activity is recalculated.

• 9 -1 In order for the consumer to obtain the tariff, they must follow the application steps through the service provider's portal within the following three phases:

  • 9 -1-1 Phase One: This is the phase of submitting the Claim at the service provider's portal. The service provider's portal begins receiving applications for obtaining the tariff from the beginning of April until the end of June each year. In this phase, the service provider verifies the load factor requirements, ensures that the establishment's activity matches the data from the Ministry of Commerce according to the verification method approved by the electric service provider, and that the establishment's activity falls within the sectors eligible for the tariff. The following is required to submit the Claim:

    • 9 -1-1-1 Providing the electric service provider with the name of the establishment along with a valid license or permit issued by the relevant Government Agency to conduct its activity, specifying the classification of the establishment according to the approved national classification for economic activities (ISIC-4) level six, with the consumer obligated to notify the electric service provider in case of expiration of their license or permit or change of activity within a period not exceeding five (5) working days.

    • 9 -1 -1 -2 Providing the electric service provider with the meter number of the establishment with the electric service provider.

    • 9 -1 -1 -3 Providing the electric service provider with the percentage of electricity consumption costs for the consumer's establishment from its operating costs excluding raw materials.

    • 9 -1 -1 -4 The consumer's commitment to pay the necessary cost if the annual electric load factor falls below (80%) according to the conditions mentioned in paragraph (‏6- 1- 5).

    • 9 -1 -1 -5 The consumer's commitment to send their audited financial data annually according to what is stated in paragraph (‏6- 1- 6).

    • 9 -1 -1 -6 The consumer's acknowledgment of completing all the center's requirements related to energy efficiency according to what is stated in paragraph (‏6- 1- 3).

    • 9 -1 -1 -7 Signing the agreement for high electricity consumption.

  • 9 -1 -2 Phase Two: After verifying the requirements related to Phase One regarding the compliance of the load factor and ensuring that the establishment's activity falls within one of the sectors eligible for the tariff, the consumer in this phase must provide proof of compliance with the center's requirements for their establishment according to what is stated in paragraph (‏6- 1- 3) in addition to attaching the audited financial data according to what is stated in paragraphs (‏6- 1- 6- 1) and (‏6- 1- 6- 2), during the month of July of each calendar year.

  • 9 -1 -3 Phase Three: After completing the conditions of the first and second phases, this phase confirms the eligibility of the consumer for the tariff and determines the tariff for them based on what is stated in paragraph (‏5- 2), during the month of August of each year. At that time, the consumer must request the installation of electricity consumption meters specific to the qualified activity - if not available - in accordance with the provisions of the guide.

  • 9 -1 -4 Notwithstanding the provisions of paragraphs (‏9- 1- 1), (‏9- 1- 2), (‏9- 1- 3), (‏9- 4- 1), and (‏9- 4- 4) and for the purpose of applying the tariff starting from January 1, 2023, for existing establishments, the periods allocated for the application phases are as follows:

    • 9 -1 -4- 1 Phase One: Starts from January 8, 2023, and ends on February 6, 2023.

    • 9 -1 -4- 2 Phase Two: Starts from February 7, 2023, and ends on March 8, 2023.

    • 9 -1 -4 -3 Phase Three: Starts from March 9, 2023, and ends on March 13, 2023.

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• 9 -2 After completing the application steps, the electric service provider studies the Claim and informs the consumer of the final study result - whether accepted or rejected - within a period not exceeding the end of August of each year, specifying the consumer's category and the tariff allocated to them based on what is stated in paragraph (‏5- 2). In case of any observations, the electric service provider must notify the consumer, and the consumer has the right to object according to the consumer complaints processing procedures approved by the authority.

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• 9 -3 Applications from qualified consumers who own new establishments, where the date of electricity supply to their establishment was after the specified application dates, will be processed, allowing them the opportunity to apply for the tariff in the same year that electricity was supplied to them.

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• 9 -4 The application of the tariff to the qualified consumer begins after the approval of the Claim as follows:

  • 9 -4 -1 Existing establishments: From January 1 of the following year.

  • 9 -4 -2 New establishments that apply for qualification during the same year in which electricity was supplied: From the date of electricity supply.

  • 9 -4 -3 New establishments that apply for qualification after the year in which electricity was supplied: From January 1 of the following year.

  • 9 -4-4 The tariff is not applied retroactively to previous periods.

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• 9 -5 The authority may request the necessary information and data for verification and study purposes.

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• 9 -6 The governor may interpret or amend any of the paragraphs contained in this chapter.

This is the stage of submitting the claim at the service provider's portal, where the consumer signs the agreement forms, obligations, admissions, and potential penalties resulting from the application of this tariff to them and provides the necessary data.