Pursuant to 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 based on 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, and the Authority's Board of Directors Decision No. (01/53/45) dated 6/7/1445 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 to establish a tariff for high electricity consumption, 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). The committee is responsible for periodically reviewing these 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 stipulated that establishments must meet a number of conditions to apply the high electricity consumption tariff, and assigned the authority the task of issuing the necessary rules, regulations, and executive procedures for the application of this tariff.

Whereas the Council of Ministers issued a decision under number (361) dated 26/5/1444 AH, amending item (Sixth) of the Council of Ministers' decision number (111) dated 14/2/1443 AH, so that the application of the high electricity consumption tariff for existing establishments begins 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, and the authority's Board of Directors' decision number (01/53/45) dated 6/7/1445 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 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:

• Committee: A committee formed under the chairmanship of the Ministry of Energy, with membership from: (Ministry of Finance, Ministry of Investment, Ministry of Economy and Planning, Water and Electricity Regulatory Authority, and Local Content and Government Procurement Authority) that works to identify the sectors eligible for the intensive electricity consumption tariff.

• Authority: Water and Electricity Regulatory Authority.

• 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.

• Center: Saudi Energy Efficiency Center.

• Evidence: The Electric Service Provision Guide issued by the decision of the Water and Electricity Regulatory Authority No. (46/430) dated 1/7/1430 AH, and its amendments.

• Document: This document titled “Intensive Electricity Consumption Tariff: Rules, Regulations, and Implementing Procedures.”

• Intensive Consumption 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 10% or higher.

• Consumer: Any person supplied with electric service for the purpose of feeding the consumption of their establishment.

• Qualified Consumer: A consumer who meets 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 electricity supply initiated before January 1, 2023.

• New Establishments: Establishments eligible for the application of the intensive electricity consumption tariff that have electricity supply initiated from January 1, 2023, onwards.

• Eligibility Period: The period during which the qualified consumer is entitled to the intensive electricity consumption tariff.

• 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.

• Service Provider Portal: An electronic portal available on the service provider's website, through which the consumer can apply for the intensive electricity consumption tariff.

• Cost Calculation Model Portal: An electronic portal through which the consumer uploads their financial data and calculates the average percentage of electricity cost to operating costs excluding raw material costs for eligible activities or sectors.

• Guideline for Financial Data: An explanatory document that includes the financial data required to be sent to the Cost Calculation Model Portal.

• Violations Committee: A committee that reviews and adjudicates violations stipulated in Article Nineteen of the Electricity Law.

• Raw Materials: Unprocessed or partially processed materials and resources that must be available specifically for the manufacturing and installation of sold products or provided services.

• Electricity Cost: The cost of consuming active electrical energy measured in (kWh) from the service provider's network according to the consumption category tariff specified in the Evidence.

4- 1 The Authority is the final reference in interpreting any text or ruling contained in this document or in the event of a conflict between it and any other regulatory documents.

4- 2 The consumer must do the following:

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

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

• 4- 2- 3 Notify the service provider immediately of any change that may affect its compliance with the qualification requirements.

4- 3 The service provider must do the following:

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

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

• 4- 3- 3 Provide the Authority with the necessary information and data for verification and study purposes.

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 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 service provider and the consumer through these procedures, either party has the right to escalate their complaint to the Authority for adjudication.

7- 1 The consumer is considered eligible for the application of the intensive electricity consumption tariff for their establishment after submitting a request for the tariff and meeting all the following conditions:

• 7- 1- 1 The establishment must belong to an eligible activity or sector, taking into account the following:

  • 7- 1- 1- 1 The consumer must have a valid license or permit to practice the activity issued by the relevant Government Agency.

  • 7- 1- 1- 2 The service provider must verify that the consumer's activity matches the activity registered in the Ministry of Commerce database according to the approved procedures.

• 7- 1- 2 The annual electrical load factor for the electricity consumption in the consumer's establishment must not be less than the qualifying limit (80%), taking into account the following:

  • 7- 1- 2-1 The service provider verifies compliance with the condition through the consumption data for the twelve months preceding the month of application, ensuring that the annual electrical load factor for the establishment does not exceed (5%) less than the qualifying limit (80%), which is equivalent to a load factor of (76%).

  • 7- 1- 2- 2 In the case of having a consumption period of less than (12) months and exceeding (6) consecutive months, the electrical load factor for that period is calculated and is equivalent to the annual electrical load factor.

  • 7- 1- 2- 3 If the necessary data for verifying compliance is not available with the service provider at the time of application, or if the total available consumption period does not exceed (6) consecutive months, the consumer is exempt from this condition.

• 7- 1- 3 The consumer must send the financial data of their establishment to the Cost Calculation Model Portal during the second phase of the application, specifying the ratio of electricity costs to operational costs excluding raw materials for the establishment, taking into account the following:

  • 7- 1- 3- 1 The financial data must be audited by an external auditor accredited by the Saudi Organization for Chartered and Professional Accountants (SOCPA).

  • 7- 1- 3- 2 The financial data must include all requirements specified in the financial data guideline form.

  • 7- 1- 3- 3 If the electricity service for the establishment is launched during the same year of application, the consumer is exempt from this condition. If the qualifying activity includes only this establishment, the consumer must send a feasibility study and cost assessment to the Cost Calculation Model Portal as specified in the financial data guideline form.

• 7- 1- 4 The energy efficiency level of the establishment must comply with the standards set by the center, taking into account the following:

  • 7- 1- 4- 1 The center determines the standards for the consumer based on the activity of the establishment and the volume of consumption, and the service provider must provide the center with the necessary data for this purpose.

  • 7- 1- 4- 2 The center has the right to grant conditional approval or exempt certain activities from applying some energy efficiency standards.

  • 7- 1- 4- 3 The center must provide the service provider with the approval status before the end of the second application phase referred to in Chapter Ten, and continuously verify the consumer's compliance, notifying the service provider of any non-compliance status.

  • 7- 1- 4- 4 The electricity service provider must verify the existence of the center's approval within the timeframe specified by the center.

  • 7- 1- 4- 5 If the consumer does not meet the center's standards within the specified timeframe, the service provider must be notified of non-compliance, and the service provider must adjust the consumption category as specified in the guideline and recalculate the consumption bill for the period benefiting from the tariff retroactively according to the adjustment.

• 7- 1- 5 The consumer must have dedicated and independent meters for the qualifying activity for the purpose of measuring electricity consumption and the electrical load factor, taking into account the following:

  • 7- 1- 5- 1 The service provider must notify the consumer eligible for the intensive consumption tariff after the third application phase referred to in Chapter Ten to allocate independent meters for the activity - if not available - and complete the installation before the date of the commencement of the tariff application on the establishment.

  • 7- 1- 5- 2 The consumer must request the installation of meters to measure electricity consumption specific to the qualifying activity - if not available - and complete the installation before the specified period, in accordance with the provisions of the guideline.

• 7- 1- 6 The consumer must commit to the service provider when submitting the request for the tariff to the following obligations in case their establishment is qualified:

  • 7- 1- 6- 1 Completing the energy efficiency standards within the timeframe specified by the center.

  • 7- 1- 6- 2 Sending the audited financial data of their establishment annually to the Cost Calculation Model Portal during the second application phase.

  • 7- 1- 6- 3 Immediately notifying the service provider of any change that may affect their compliance with the qualification requirements stated in this chapter, and any delay in notification does not exempt the consumer from applying the tariff due to them as specified in the guideline from the date of the change affecting their compliance with the qualification requirements.

  • 7- 1- 6- 4 In case of achieving an annual load factor lower than the qualifying load factor (80%), paying the value of the additional electricity consumption necessary to achieve a load factor of (80%) according to the intensive electricity consumption tariff.

  • 7- 1- 6- 5 Acknowledging that all submitted data is correct and not misleading.

7- 2 In the event that the consumer submits false or misleading data or information, the following must be taken:

• 7- 2- 1 The service provider must adjust the consumption category as specified in the guideline and recalculate the consumption bill for the period benefiting from the tariff retroactively according to the adjustment.

• 7- 2- 2 They are referred to the Violations Committee to consider imposing the appropriate penalty.

7- 3 The eligible consumer may request withdrawal after the application of the intensive consumption tariff on their establishment, taking into account the following:

• 7- 3- 1 The consumer is obligated, in case of achieving a load factor lower than the qualifying load factor (80%) during the application period, to pay the value of the additional electricity consumption necessary to achieve this condition according to the intensive electricity consumption tariff.

• 7- 3- 2 The service provider will adjust the consumption category as specified in the guideline from the date of submitting the withdrawal request.

8- 1 The service provider must verify annually during the month of January the compliance of the qualified consumer with all required conditions, in order to ensure the continuity of the tariff application. The service provider is obligated to adjust the consumption category as indicated in the evidence from the date of non-compliance with any of the qualifying conditions. The consumer has the right to reapply for the tariff whenever these conditions are met again.

8- 2 The qualified consumer for the application of the high electricity consumption tariff for their facility must continuously comply with all of the following conditions throughout the eligibility period:

• 8- 2- 1 The consumer must have a valid license or permit to conduct the activity issued by the relevant government agency throughout the eligibility period.

• 8- 2- 2 The annual electrical load factor for the electricity consumption in the consumer's facility must not be less than the qualifying limit (80%) throughout the eligibility period. During the annual verification process after the end of the calendar year, if it is found that the consumer's annual electrical load factor has decreased by more than (5%) from the qualifying load factor (80%) - that is, to less than a load factor of (76%) - then the consumer will not be eligible for the continued application of the tariff due to the absence of one of the conditions. The service provider is obligated to adjust the consumption category according to the provisions of the evidence, with the consumer being obligated to pay the value of the electricity consumption according to paragraph (7-1-6-4).

• 8- 2- 3 The energy efficiency level of the facility must comply with the standards set by the center throughout the eligibility period. The center must provide the service provider with the approval status or notify them of any non-compliance during the annual verification process after the end of the calendar year.

• 8- 2- 4 The consumer must send the audited financial data for their facility annually to the Cost Calculation Model Portal, taking into account the following:

  • 8- 2- 4- 1 The Cost Calculation Model Portal will notify the facility in case of non-compliance and remind it to send that data.

  • 8- 2- 4- 2 The Cost Calculation Model Portal will notify the service provider of the excluded facilities in case of non-compliance with sending that data.

9- 1 Audits are conducted in the Cost Calculation Model Portal for consumers applying for the intensive consumption tariff and are selected based on the following criteria:

• 9- 1- 1 If one of the activities qualifies for the tariff with a single qualifier, it is selected for auditing its audited financial data.

• 9- 1- 2 In the case where there are two qualifiers for the same activity, the audit is conducted on the financial data of the qualifier with the highest ratio of electricity cost to operational costs of its establishment (excluding raw materials).

• 9- 1- 3 In the case where there are three or more qualifiers for the same activity, the audit is conducted on the financial 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 of its 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:

• 9- 1 -4 An audit may be conducted on any of the applicants when necessary.

9- 2 The Cost Calculation Model Portal may request any additional necessary data that enables the audit to be conducted.

9- 3 The Cost Calculation Model Portal notifies the Service Provider Portal of the following:

• 9- 3- 1 A list of qualified activities or sectors of the first or second category.

• 9- 3- 2 A list of excluded establishments.

9- 4 Through the Cost Calculation Model Portal, when there is a discrepancy between the entered electricity cost share from the establishment and the audited financial data, the applicant is rejected and the average electricity cost from the operational costs of the activity without raw materials is recalculated.