Saudi Energy announces revised electricity tariffs from 1 January 2027

31 Oct 2026 · Construction

StatusCompany announcement published on its own website; the tariffs take effect on the date stated.

Saudi Energy, formerly Saudi Electricity Company, has announced revised electricity tariffs that will take effect on 1 January 2027. The schedule was published on the company's official website. It covers residential, commercial, industrial, agricultural, charitable and government customers.

The largest percentage increase in consumption rates is 16.7%, for residential customers using up to 6,000 kilowatt-hours (kWh) a month. They will pay 21 halalas/kWh, up from 18 halalas. For consumption above 6,000kWh, the rate will rise from 30 to 33 halalas/kWh, an increase of 10%.

The industrial tariff will increase by 15%, from 20 to 23 halalas/kWh. Commercial customers, private healthcare facilities and private educational facilities will pay 25 halalas/kWh, up from 22 halalas, for consumption up to 6,000kWh a month. Above that level they will pay 35 halalas/kWh, up from 32 halalas. Tariffs for charities and government customers will also increase.

In addition to consumption-based charges, customers will pay a fixed monthly fee based on the capacity of their electricity meter. This replaces the previous separate charge for meter reading, maintenance and billing. VAT is applied to the revised tariffs.

The new tariffs coincide with changes to water consumption tariffs announced by the National Water Company, also effective from 1 January 2027. King Salman Bin Abdulaziz Al-Saud directed support measures following a proposal presented by Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al-Saud. These include raising the minimum wage required for Saudi nationals to count as full employees towards private sector localisation quotas under the Nitaqat programme.

The changes come as Saudi Arabia plans substantial investment in its electricity infrastructure. In September 2025, Saudi Energy announced plans to invest SR220bn ($58.7bn) in power infrastructure projects between 2025 and 2030. A June 2025 report by Fitch Ratings forecast negative free cash flow of about SR16bn a year over the period and rising leverage, reflecting the financial demands of the programme.

Why this mattersThe source does not mention Madinah, but the national schedule applies to any project there. For hospitality, mixed-use and residential schemes, the commercial rate of 25 halalas/kWh (35 above 6,000kWh) and the new capacity-based fixed fee are worth building into operating-cost models, and likely into feasibility for cooling-heavy buildings. Higher rates may strengthen the case for efficient facades, load management and on-site efficiency measures. Worth checking meter capacity sizing at design stage, since the fixed fee now follows it, and diarising 1 January 2027 for any projects budgeted on current tariffs.

Key figures16.7% max residential increase · 21 halalas/kWh residential up to 6,000kWh (from 18) · 33 halalas/kWh residential above 6,000kWh (from 30) · 23 halalas/kWh industrial (from 20) · 25 halalas/kWh commercial up to 6,000kWh (from 22) · 35 halalas/kWh commercial above 6,000kWh (from 32) · SR220bn power investment 2025-2030 · effective 1 January 2027

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