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Sat 25 Dec 2010 05:26 PM

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Saudi Arabia plans water price rise for non-residential users

Higher prices will be applied to commercial buildings, industries, government, schools and hospitals

Saudi Arabia plans water price rise for non-residential users
WATER RESOURCE: Kingdom needs $33.3bn in investments in desalination and water recycling plants to meet water demand (Bloomberg Images)

Saudi Arabia, the world’s largest desalinated water producer, plans to raise
water prices for non-residential users.

Higher prices will be
applied to commercial buildings, industries, government, schools and hospitals,
Riyadh based National Water Co chief executive officer Loay al Mussalam said on
December 21 in response to e-mailed questions. He said Saudi regulators are
discussing the timing and structure of the tariffs.

Saudi Arabia wants raise
prices to encourage water conservation. The kingdom needs $33.3bn in
investments in desalination and water recycling plants to meet water demand,
Riyadh based NCB Capital said in a report.

Under the current tariff
system, water costs per month are 0.10 riyals for 1-50 cubic meters, 0.15
riyals for 50-100 cubic meters and 6 riyals for more than 300 cubic meters,
according to data provided by National Water.

Al Mussalam said National
Water “will focus on tariff adjustments for the non-domestic or non-residential
sector, without affecting the domestic or residential sector.”

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