Sep 23 2012
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Saudi Arabia aims to privatize electricity sector by 2014 as demand increases
The restructuring will involve dividing SEC 's electricity generation business into similar companies that will compete with each other and SEC 's independent power providers (IPPs). The SEC will also set up a single buyer of electricity from the four electricity generation companies and the IPPs. A single separate transmission company has already been established and has been in operation since January 2012. "We are working now at establishing four generation companies and one distribution company by 2014," said Amer Al-Swaha, head of SEC 's IPP program said.
"The four generation companies will have similar capacity and technology and will not be based on geographic region. They will all have the same starting point. This will allow us to compare their relative performance," he said. "All the four companies and the IPPs will be there. And you will have a single buyer model to buy all the power from all those companies and pay a transmission fee to the transmission company and the distribution companies a distribution fees," he added.
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