Saturday, Mar 16, 2013
BEIRUT (Zawya Dow Jones)--The state-controlled utility Saudi Electricity Co. (5110.SA), or SEC, said it has concluded an exclusive agreement with its unit National Electricity Transmission Co. to rent the full capacity of the latter's power transmission grid.
The arrangement applies initially for three years and will be extended depending on the development of the kingdom's power market, SEC said in a statement posted on its website on Saturday.
The deal is part of SEC's program of gradual transition to a competitive power market in the future, Ali Al Barrak, SEC's chief executive, said in the statement. He added that the transitional phase consists of buying energy from all producers and renting the full capacity of the electricity transmission and distribution networks.
The prerequisites for a competitive power market [in Saudi Arabia] aren't yet available due to the low tariff and subsidies, Mr. Barrak said.
Write to Shikrallah Nakhoul at shikrallah@zawya.com
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(END) Dow Jones Newswires
16-03-13 0848GMT
