Saudi Electricity Co expects little impact from price hike

Reforms to the kingdom's energy subsidy would see 'significant effects' on income, but would be offset by higher fuel prices, company says
Saudi Electricity Co expects little impact from price hike
(AFP/Getty Images)
By Reuters
Tue 29 Dec 2015 12:10 PM

Saudi Electricity Co expects the effects of fuel and electricity price hikes announced in the 2016 government budget to roughly balance out, with little overall impact on its bottom line, the company said in a bourse statement on Tuesday.

The firm said it would see "significant effects" on income from the energy subsidy reforms introduced on Monday, but that the rise in costs associated with higher fuel prices would offset increased revenues from electricity sales.

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