Saudi Arabia Raises Electricity and Water Tariffs for 2027
Saudi Arabia will increase electricity, water, and wastewater tariffs starting January 1, 2027, accompanied by royal directives to support affected employees.
The Government of Saudi Arabia announced revised tariffs for electricity, water, and wastewater services across the Kingdom, effective January 1, 2027. These adjustments include broad price hikes across residential, commercial, industrial, agricultural, charitable, and government sectors.
Saudi Energy, formerly the Saudi Electricity Company, will increase residential rates for consumption up to 6,000 kWh per month from 18 to 21 halalas per kWh, a 16.7% increase. Consumption exceeding that threshold will rise from 30 to 33 halalas. Industrial tariffs will increase by 15%, while commercial and private healthcare and education facilities will see rates reach 25 and 35 halalas per kWh based on usage. The company is also replacing separate meter reading and maintenance charges with a fixed monthly fee based on meter capacity.
Simultaneously, the National Water Company introduced a four-tier monthly usage system. Water charges will range from SR1 per cubic metre for the first 15 cubic metres up to SR6 for consumption exceeding 45 cubic metres. Wastewater charges will scale from SR0.50 to SR3 per cubic metre, with new monthly charges based on water meter diameters.
To mitigate the impact, King Salman bin Abdulaziz Al Saud directed support measures upon a proposal by Crown Prince Mohammed bin Salman. These measures include support for military, government, and private sector employees, as well as adjustments to the Nitaqat localization program's minimum wage requirements.
