Home Business January 30 The shareholders of “Saudi Electricity” vote to transfer...

January 30 The shareholders of “Saudi Electricity” vote to transfer the ownership of the “energy purchase” company to the state

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The Saudi Electricity Company has invited its shareholders to attend the 23rd Ordinary General Meeting on January 30, 2022, to vote on the sale and transfer of all shares of Saudi Electricity in the Saudi Energy Purchase Company to state ownership.

In November 2021 Saudi Electricity received a telegram from the Minister of Energy, President of the Ministerial Committee for the restructuring of the electricity sector, in which stated that the Council of Ministers had issued a decision approving the adoption of all legal procedures necessary for the purchase and transfer of the entire stake of the Saudi Electricity Company in the Saudi Energy Procurement Company to state ownership, under the of a restructuring program of the electricity sector to integrate the financial and regulatory reforms announced in November 2020 by the Ministerial Committee for the restructuring of the electricity sector.

Saudi Electricity stated in a statement on “Tadawul Saudi Arabia” today, Thursday, that the agenda of the assembly includes a vote to authorize the board of directors of Saudi Electricity Company to take all necessary legal procedures to sell and transfer the entire shares of Saudi Electricity Company of the state-owned Saudi Energy Procurement Company.

No material financial impact on Saudi Electricity Company’s equity is expected.

The operational impact of the transfer of ownership is represented by the activation of structural reforms in the electricity sector with the aim of increasing efficiency and improving the service, including the independence of the Saudi Energy Procurement Company responsible for the competitive offer of renewable and conventional energy to keep pace with the growing demand for energy and the management of commercial agreements for the purchase and sale of energy.

Interestingly, Saudi Electricity established Saudi Energy Procurement Company as a wholly owned limited liability company in 2017 with a capital of two million riyals.

The restructuring plan for the electricity sector in Saudi Arabia aims to establish transparency in commercial relations between subjects operating in the electricity sector, and to activate work mechanisms on an economic basis, which contribute to the achievement of the objectives of the electricity sector in the Kingdom, including reducing the use of liquid fuels, raising the level of respect for the environment and enhance the reliability of the electricity transmission and distribution networks to allow the production of electricity from renewable energy sources, with the aim of achieving the objectives of the optimal energy mix for the production of electricity , improving and automating distribution networks, to achieve the desired objectives, and raising the level of quality of the services provided to consumers in in line with the Kingdom’s Vision 2030 goals.

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