Pursuant to the powers granted to the Saudi Electricity Regulatory Authority (the Authority) in Articles (4) and (12) of the Electricity Law issued by Royal Decree No. (M/44) dated 16/5/1442 AH, and Articles (4) and (5) of the Authority’s Statute issued by Council of Ministers Decision No. (263) dated 14/5/1442 AH, and its amendment by Council of Ministers Decision No. (918) dated 28/10/1445 AH, and based on Council of Ministers Decision No. (111) dated 14/2/1443 AH, as amended by 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, approving the rules, regulations, and executive procedures necessary for the application of the intensive electricity consumption tariff and its amendments.

• The intensive consumption tariff targets sectors qualified by a committee chaired by the Ministry of Energy, with membership including: (Ministry of Finance, Ministry of Investment, Ministry of Economy and Planning, Saudi Electricity Regulatory Authority, and Local Content and Government Procurement Authority). The committee is responsible for periodically reviewing these sectors and invites representatives from relevant entities when discussing the activities or sectors under its supervision.
• Whereas the aforementioned Council of Ministers decision has stipulated that establishments must meet a number of conditions to apply the intensive electricity consumption tariff, and assigned the Authority the task of issuing the necessary rules, regulations, and executive procedures to implement this tariff, the Authority has issued this document to regulate the application of the tariff stipulated pursuant to its Board of Directors’ decision No. (03 / 44) dated 2/5/1443 AH, and its amendments.

• 3-1 The terms and phrases defined in the Electricity Law, or the Implementing Regulation of the Electricity Law concerning the tasks of the Saudi Electricity Regulatory Authority, or the Statute of the Saudi Electricity Regulatory Authority, or the Electric Service Provision Guide 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 set forth opposite each of them when used in this document, unless the context requires otherwise:

  • Committee: A committee responsible for determining the list of sectors eligible to obtain the intensive electricity consumption tariff and periodically reviewing it. It is formed pursuant to Council of Ministers Decision No. (111) dated 14/2/1443 AH, chaired by the Ministry of Energy, and composed of the following members: (Ministry of Finance, Ministry of Investment, Ministry of Economy and Planning, Saudi Electricity Regulatory Authority, Local Content and Government Procurement Authority).
  • Authority: Saudi Electricity Regulatory Authority.
  • Service Provider: Any person holding a valid license issued by the Authority authorizing them to carry out the activities of electricity distribution and retail sale.
  • Center: Saudi Energy Efficiency Center.
  • Guide: Electric Service Provision Guide issued pursuant to Saudi Electricity Regulatory Authority Decision No. (46/430) dated 1/7/1430 AH, and its amendments.
  • Intensive Consumption Tariff: The approved financial consideration for intensive electricity consumption, referred to as the "tariff" in this document.
  • Eligible Sectors: The list of sectors eligible to obtain the intensive electricity consumption tariff, approved by the Committee formed by Council of Ministers Decision No. (111) dated 14/2/1443 AH.
  • Eligible Activity: The activity belonging to one of the eligible sectors where the average ratio of electricity cost to operating costs excluding raw material costs is 10% or higher.
  • Consumer: Any person supplied with electric service for their own consumption.
  • Eligible Consumer: A consumer who meets the requirements of the intensive electricity consumption tariff as detailed in this document.
  • Existing Facilities: Facilities eligible for the application of the intensive electricity consumption tariff, which had electricity supply activated before January 1, 2023.
  • New Facilities: Facilities eligible for the application of the intensive electricity consumption tariff, which have electricity supply activated on or after January 1, 2023.
  • Entitlement Period: The time period during which the eligible consumer receives the intensive consumption tariff applied to their facility.
  • Annual Electrical Load Factor: The quotient of the average annual electrical load divided by the maximum hourly load during the year.
  • Electrical Load Factor for a Specific Period: The quotient of 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, which calculates the average ratio of electricity cost to operating costs excluding raw material costs for eligible activities or sectors.
  • Financial Data Guideline Model: An explanatory document including the financial data required to be submitted to the Cost Calculation Model Portal.
  • Raw Materials: Unprocessed or partially processed materials and resources that must be available specifically for manufacturing and assembling the sold products or supplied 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 detailed in the Guide.

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

• 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 high consumption tariff as specified in this document.
  • 4-2-3 Immediately notify the service provider of any change that may affect their fulfillment of the qualification requirements.

• 4-3 The service provider must do the following:

  • 4-3-1 Comply with all laws, regulations, adhere to the approved technical standards, and any other related regulatory requirements adopted by the Authority.
  • 4-3-2 Ensure all consumer rights stipulated in this document and other related laws and regulations.
  • 4-3-3 Provide the Authority with the necessary information and data for the purpose of verification and study.

• 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 submit a complaint to the service provider, in accordance with the consumer complaint handling procedures approved by the Authority.

• 5-1 The intensive consumption tariff applies to establishments belonging to the industrial, commercial, and agricultural consumption categories, and operating in activities or sectors qualified – as determined by the Committee – through the consumer submitting a request to apply the intensive consumption tariff to their establishment, and fulfilling all the qualifying conditions for applying the tariff stipulated in Chapter Seven of this document.

• 5-2 The intensive consumption tariff for establishments shall be as stated in Table No. (1), according to two categories:

  • 5-2-1 Category One: Activities or sectors in which the ratio of electricity cost to operating costs excluding raw material costs is (20%) or more.
  • 5-2-2 Category Two: Activities or sectors in which the ratio of electricity cost to operating costs excluding raw material costs is between (10%) and (19.9%).

• 5-3 The tariff shall be applied to the qualified consumer according to the establishment category as stated in Table No. (1), provided that the tariff obtained by the establishment does not exceed the electricity consumption tariff for the category to which it belongs.

• | Category of Establishment | Type of Network Connected to the Establishment | Tariff (Halalah per kilowatt-hour) |
  | First Category | Transmission Network | 12 |
  | Distribution Network | 18 | |
  | Second Category | Transmission Network | 18 |
  | Distribution Network | 24 | |

• 6-1 The qualified consumer is entitled to apply the tariff to their establishment during the entitlement period.

  • 6-1-1 The start date of the entitlement period for applying the tariff shall be as follows:

    • 6-1-1-1 For existing establishments, the start date of the entitlement application shall be from January 1 of the year following the year of submitting the application to obtain the intensive consumption tariff.
    • 6-1-1-2 For new establishments that apply for qualification during the same year in which the electricity was energized, the start date of the entitlement application shall be from the date of energizing the establishment, and the qualified consumer may choose the start date of applying the tariff to their establishment, provided that it does not exceed the beginning of the year following the year in which the electricity was energized.
    • 6-1-1-3 For new establishments that apply for qualification after the end of the year in which the electricity was energized, the start date of the entitlement application shall be from January 1 of the year following the year of submitting the application to obtain the intensive consumption tariff.

  • 6-1-2 The end date of the entitlement period for applying the tariff shall be as follows:

    • 6-1-2-1 For existing establishments, the end date of the entitlement application shall be the end of the year 2029.
    • 6-1-2-2 For new establishments that apply for electrical service connection before the end of 2023, the end date of the entitlement application shall be seven (7) years from the date of energizing the establishment.
    • 6-1-2-3 For new establishments that apply for electrical service connection after the end of 2023, the end date of the entitlement application shall be the end of the year 2030.

• 6-2 After the entitlement period for applying the tariff expires, or if one of the qualification conditions ceases to exist during the entitlement period, the electricity consumption tariff shall be applied to the establishment in accordance with the provisions of the Evidence.

• 6-3 Table No. (2) illustrates the entitlement period for the existing and new establishments referred to above.

• | Date of Request for Electrical Service Connection | Date of Power Energization | Facility Classification | Date of Qualification Application Submission | Start of Tariff Eligibility | End of Tariff Eligibility |
  |   | Before January 1, 2023 | Existing Facilities | Not Applicable | The Year Following the Year of Application | December 31, 2029 |
  | Before the End of 2023 | From January 1, 2023 | New Facilities | The Same Year in Which Power Was Energized | From the Date of Power Energization | (7) Years from the Date of Power Energization |
  | After the Year in Which Power Was Energized Has Passed | The Year Following the Year of Application | | | | |
  | After the End of 2023 | After the End of 2023 | New Facilities | The Same Year in Which Power Was Energized | From the Date of Power Energization | December 31, 2030 |
  | After the Year in Which Power Was Energized Has Passed | The Year Following the Year of Application | | | | |

• 7-1 The consumer is considered eligible to apply the intensive consumption tariff to their establishment after submitting a request to obtain the tariff and meeting all the following conditions:

  • 7-1-1 The establishment must belong to a qualified 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 competent 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’s database according to the approved procedures.

  • 7-1-2 The annual electrical load factor for 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 this condition through consumption data for the twelve months preceding the month of application, provided that the annual electrical load factor of the establishment’s consumption does not fall more than (5%) below the qualifying limit (80%), which is equivalent to a load factor of (76%).
    • 7-1-2-2 In case the consumption period is less than (12) months but exceeds (6) consecutive months, the electrical load factor for that period is calculated and considered equivalent to the annual electrical load factor.
    • 7-1-2-3 This condition does not apply if the necessary data to verify the condition is not available to the service provider at the time of application, or if the total available consumption period does not exceed (6) consecutive months.

  • 7-1-3 The consumer must submit the financial data of their establishment to the Cost Calculation Model Portal during the second application phase stipulated in Chapter Ten, indicating the ratio of electricity cost to operating 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 guidance form.
    • 7-1-3-3 If the electrical service for the establishment is launched during the same application year, the consumer must submit a feasibility study and cost assessment to the Cost Calculation Model Portal as outlined in the financial data guidance form.

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

    • 7-1-4-1 The center determines the standards for the consumer based on the establishment’s activity and consumption size, 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 to the consumer or exempt certain activities from applying some energy efficiency standards.
    • 7-1-4-3 The center provides the authority and the service provider with a statement clarifying the approval status of the consumer during the period stipulated in Chapter Ten.

  • 7-1-5 The consumer must have dedicated and independent meters for the qualified activity for the purpose of measuring electricity consumption and 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 stipulated in Chapter Ten to allocate independent meters for the establishment and the qualified activity—if not available—and complete the installation before the start date of the tariff application on the establishment.
    • 7-1-5-2 The consumer must request the installation of electricity consumption meters specific to the qualified activity—if not available—and complete the installation before the specified period, in accordance with the provisions of the guide.

  • 7-1-6 The consumer must undertake to the service provider upon submitting the tariff application to comply with the following obligations if their establishment is qualified:

    • 7-1-6-1 Complete the energy efficiency standards within the timeframe determined by the center.
    • 7-1-6-2 Submit the audited financial data of their establishment annually to the Cost Calculation Model Portal during the second application phase stipulated in Chapter Ten.
    • 7-1-6-3 Immediately notify the service provider of any change that may affect their compliance with the qualification requirements set forth in this chapter, and any delay in notification does not exempt the consumer from applying the electricity consumption tariff to the establishment according to the provisions of the guide from the date the change affecting compliance occurs.
    • 7-1-6-4 If the consumer achieves an annual load factor lower than the qualifying load factor (80%), pay the value of the additional electricity consumption required to achieve the (80%) load factor according to the intensive consumption tariff.
    • 7-1-6-5 Acknowledge that the meter(s) are dedicated and independent for the qualified activity.
    • 7-1-6-6 Acknowledge that all submitted data is correct.

• 7-2 In case the consumer submits incorrect or misleading data or information, the following must be taken:

  • 7-2-1 The service provider must adjust the consumption category according to the provisions of the guide and recalculate the consumption bill value for the period benefiting from the intensive consumption tariff retroactively according to the adjustment.
  • 7-2-2 The service provider must notify the authority immediately upon detecting or discovering the consumer’s action to complete the violation control procedures and refer it to the competent committee.

• 7-3 The qualified consumer may request withdrawal after applying the intensive consumption tariff to one or more meters of their establishment, taking into account the following:

  • 7-3-1 The consumer is obligated, if achieving a load factor lower than the qualifying load factor (80%) during the application period, to pay the value of the additional electricity consumption required to meet this condition according to the intensive consumption tariff.
  • 7-3-2 The service provider must adjust the consumption category and apply the electricity consumption tariff to the establishment according to the provisions of the guide from the date of submitting the withdrawal request.