To meet the Kingdom's growing demand for electrical
power in the industrial and agricultural sectors of the
economy, the Saudi government has replaced the old
fragmented system of electrical power generation
(provided by numerous small companies) with Saudi
Consolidated Electric Companies - each providing
electricity for a whole region of the Kingdom.
: - In 1972 (1392 AH), the Department of Electricity
Services was established. This Department was separated
from the Ministry of Commerce and was given the
additional responsibility of planning electrical
services for the Kingdom as a whole.
1974 (1394 AH), the Ministry of Commerce was divided in
two. One part was the Commerce Agency; the other was the
Industry and Electricity Agency. In that same year, the
electricity tariff was set for all companies - at a
level below their actual costs.
1975 (1395 AH), the Government adopted ambitious plans
for economic development requiring very great investment
in the development of industry and electrification. The
Ministry of Industry and Electricity was formed, with an
Industrial Affairs Agency and an Electricity Affairs
Agency. The Electricity Affairs Agency expanded the
planning, co-ordination and regulatory roles in the
program for providing electrical services to all parts
of the Kingdom. The Electricity Corporation was
established in 1976 (1396 AH) to undertake
responsibility for co-ordination and achievement of the
ambitious electricity plans contained in the Kingdom's
the years from 1976 to 1981 (1396 - 1401 AH) all
community electricity generation was gradually subsumed
under the four regional Saudi Consolidated Electricity
Companies (SCECOs), located in the Central, Eastern,
Southern and Western regions of the Kingdom.
the formulation of a coherent development plan and the
establishment of the SCECOs, the Government was able to
implement an electrification program that brought
electricity to the towns and, from the towns, to the
villages and settlements throughout the Kingdom.
1970 (1390 AH), there were 216,000 customers for
electricity in the Kingdom. In 1996, there were
Consolidated Electricity Companies (SCECOs)
first SCECO (SCECO-East) was created in 1976 (1396/97
AH). This was followed in 1979 (1399/1400 AH) by SCECO-South.
Electricity for the south west of the Kingdom is
provided by another consolidated company, and the
central region is served by SCECO-Central.
General Electricity Corporation (GEC) had overall
responsibility for the Kingdom's electricity system and
had a direct responsibility for the provision of
electrical supplies to rural areas not then covered by
the consolidated companies. The GEC represented the
government equity holdings in all the independent
electricity generating companies and was a source of
finance for those companies' capital requirements.
1998, the Government announced the reorganization of the
electricity sector by establishing a stock market
company, named the Saudi Electric Company, through the
merger of all the electricity companies operating in the