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Saudi to establish national water and energy efficiency programme

November 22, 2016 10:18 am

Saudi Arabia is set to establish a national water and energy consumption programme. (Image: Alamy)

KSA will establish national programme for water and energy efficiency

Major restructuring underway of kingdom’s energy and water sectors

Country aims to reduce electricity and water subsidies by SAR200 billion by 2020

 

Saudi Arabia will establish a national program to optimise water and energy consumption, it announced in a cabinet statement on Monday, further moves in areas where the government is seeking to cut back huge subsidies.

The new program will review policy incentives currently in place for the energy and water sectors, taking into account both economic productivity needs and inequality within society, the statement said.

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Details forthcoming

It did not elaborate on where the new program would reside within the government or whether its creation might augur further cuts to the kingdom’s extensive water and power subsidies.

The announcement comes amid major restructuring of the kingdom’s energy and water sectors, intended to support sweeping economic reform plans to wean the world’s largest crude exporter off its dependence on oil.

As part of the reform drive, Saudi Arabia aims to reduce electricity and water subsidies by SAR200 billion ($53bn) and reduce non-oil subsidies by 20 per cent by 2020.

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First cuts

It introduced its first subsidy cuts for power and water in December, then sacked the minister responsible following a public outcry over how the new water tariffs were applied to average Saudis.

Deputy Crown Prince Mohammed bin Salman, who is responsible for the economic reforms, was quoted as saying the water price increases had not been implemented as planned.

In May, King Salman restructured the ministries responsible for handling water and energy policies.

 

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Through royal decrees, he broke up the old Water and Electricity Ministry and handed responsibility for electricity over to a new Energy, Industry and Natural Resources Ministry headed by Khaled al-Falih, chairman of state oil company Aramco.

The water portfolio was incorporated into a new Environment, Water and Agriculture Ministry.

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