A historic hint●
● The establishment of the Saudi company for Electricity
The establishment of the organization of Electric services
The electricity sector has witnessed great progress
through the great care lf the custodian of the two holly mosques and his wise government
as he follows up saving the services to his citizens , especially electricity occupied
an important and eminent part of his interests and that is clear in his concrete
and abstract support to upgrade this vital and important sector that happens as
a result of his high directions by generalizing the electricity in all parts of
Saudi Arabia . Great electrical stations were set up for generation electricity.
Moreover, connecting the regions of the united Kingdom with webs for distributing
and transferring the achievements in the infrastructure of the sector of electricity.
There is a continuous development for achieving economic advancement there is a
concrete development in the electricity service as electricity is one of the bases
of development that is employed for achieving a great deal of economic prosperity
within a very short time . The sector of electricity is a continuous source of welfare
and goodness. It also witnessed a concrete progress as electricity is one of the
bases of development .the government seeks to exploit it for achieving economic
welfare within a very short time. This sector benefited a lot form the state of
stability that overwhelmed the country since its unity in 1351 Hegira and also from
the unlimited support from the leaders of the country. The observer of the history
of electricity in the kingdom can summarize essential facts, first of all the shout
time in which the sector of electricity achieved its first steps. When the country
set up the first administration to supervise the electrical affairs before the beginning
of development plans in the kingdom, the production of electricity was limited in
small civil companies which have a purely commercial characteristic.
They were set up where there are fixed population and mobs in cities and villages.
The tariff of selling electricity is different from one company to another according
to the actual cost of the production of energy, plus achieving high profits. In
Rajab month, 1381 Hegira (1961), the ministry of commerce established the first
administration that was responsible for running the affairs of electricity. Also
it put laws and order to give licenses and permits for the companies of electricity.
Moreover, this administration took the charge of encouraging the national investment
in this vital sector.
With the advent of the year 1390 Hegira (1970), there was the first 5th year plan
for development in the kingdom. In 1394 Hegira, An industrial agency of electricity
newly set up in the ministry of trade and industry , then the electrical services
constitution joined to this agency , In this year, the tariff was uniformed to sell
electricity all over the kingdom in return for lower prices than the actual cost
. In 1395 Hegira the kingdom began to execute a serial of ambitious plans so as
to achieve a balanced economic growth. The sector of electricity and industry received
a lot of developing programmes. As a result of the previous procedures, the ministry
of industry and electricity was set up on 8th Shawal, 1395 Hegira by the royal decree
No 1/236. within its frame work , the agency of electrical affairs was set up to
take the charge of publishing the electrical services and put all the plans and
programmes to develop, generate and supervise on carrying out these ambitious electrical
Seeking to unify the criteria of operating and the quality of the presented service
the general institution of electricity was sit up on the 2nd of Rajab month , 1396
Hegira by a royal decree no m/55 . This institution was responsible for the governmental
electrical projects that were already set up. After that, it carried out several
huge investments, projects in the field of electrical services. During that period
from 1396: 1401Hegira, the foundation of the four unified Saudi companies were gradually
established in the regions of the kingdom: the eastern, the middle, the southern
and the western regions. Since that time, the electrical webs were strengthened
and the electrical services were introduced continuously. At that stage , the state
was able through the development plans to spread and generalize the electricity
in the cities and villages of the kingdom until the electrical webs become extended
for thousands of kilometers covering all the regions of the kingdom of Saudi Arabia.
The establishment of the Saudi company for Electricity
Through blessing steps, the decision of the cabinet No 169 on 11/8/1419 Hegira
was issued for unifying the ten electrical companies and the operating projects
that follow the public institution of electricity in one joint company under the
name of " the Saudi company of electricity . Thus, this sector began to witness
a new and strong start for serving the country and the citizens. Also, the company
becomes profitable and participates in pushing the wheel of growth and prosperity
forward. One of the most important characteristics of that decision is that it opened
the way of competition to the private sector to invest in the field of generating
the electricity. That’s in turn, will develop the efficiency of operating and reduce
the costs. Moreover, this decision obligated the company to specialize part of its
income for research work and the development in the field of electricity itself.
Also, the company will fund the researches at universities, institutions and the
specialized centers and to rationalize the use of the electrical power, improve
its systems and keep the environment. The Saudi company for electricity began running
its own business on 1/1/ 1421 Hegira.
The establishment of the organization of Electric services
Catching up with the great care and efforts of the custodian of the two holly
mosques and his wise government for developing the sector of electricity in the
kingdom, the cabinet issued a decision No (236) on 27/8/1422 for establishing an
organization for organizing the electrical services aiming primarily to ensure saving
the electrical services with qualified and reliable levels. Also the service should
be in return for suitable prices. Also, it aims to save credibility and trust for
the investors. This will lead to increase the participation of the private sector
in the field of investment in the sector of electricity and working to achieve the
competition and reducing the monopoly which forms the basic element for the sake
of protecting the consumer and improving the efficiency of the sector performance.
There are a lot of bright points in the history of electricity like developing the
services and caring about the training programmes. When we stare at what was achieved
in the sector of electricity at this prosperous era, we’ll find great process of
building and civilization in which the Saudi people live. This reflects the care
of the state to up grade this sector rapidly and to catch up with the great development
that the kingdom witnesses in all fields.