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Mon 21 Jul 2014 10:55 AM

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Saudi VIPs clock up $720m in unpaid electricity bills - report

Some areas are dating back nearly 30 years, authority aims to clampdown on non-payment

Saudi VIPs clock up $720m in unpaid electricity bills - report
Electricity pylon

Nearly $720 million is owed by Saudi VIPs in unpaid electricity bills, with some arrears dating back nearly 30 years, it was reported on Sunday.

The Arabic news website Sabq.org cited a report by the Saudi Electricity and Cogeneration Regulatory Authority which claimed that SAR2.7 billion ($719.8 million) was unpaid by Saudi VIPs, with some dating back to before the company was even established.

The report said the electricity company said in a statement the arrears would not be allowed to continue and, in future, the law will be applied to all account holders, regardless of their status.

The figure comes to light as Arab News reported that while Saudis pay the cheapest electricity bills in the world, the electricity authority is to review tariffs and bills were likely to increase.

The report claimed the Saudi government pays around SAR150 billion per year to subsidize fuel for electricity power generation and the authority was in the process of developing a new tariff system to determine how much customers will pay for electricity in the future.

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