The observatory’s formula: The competent authorities will start dividing the electricity consumption tariff for establishments into two categories, starting from next week, and it will be applied to existing establishments for a period of 7 years, starting from next year 2023, and to new establishments until the end of 2030.
The high consumption of energy has been divided into two definitions as follows:
1- The value of the first tariff for the sectors in which the ratio of electricity cost to operational costs without raw material costs is 20% or more, equivalent to 12 halalas for the value of each kilowatt connected to the (transmission) network and 18 halalas per kilowatt connected to the (distribution) network.
2- The cost of the second electricity tariff, which amounts to operational costs without raw material costs between 10% – 19.9%, at a value of 18 halalas per kilowatt for the (transmission) network, and 24 halalas for the price of a kilowatt linked to the (distribution) network.
Some categories were also excluded from the decision, namely:
1- Governmental and residential sectors.
2- Charitable and cooperative institutions and societies.
3- Private and educational health facilities.
A committee headed by the Ministry of Energy will determine the target sectors for dividing the consumption tariff, with the membership of the ministries of “Finance, Investment, Economy and Planning”, the Water and Electricity Regulatory Authority, and the Local Content and Government Procurement Authority.