State-controlled Saudi Electricity Co., on Monday said a Cabinet resolution has approved the carve-out of its wholly owned subsidiary, Saudi Power Procurement Co. (SPPC), and transfer its ownership to the government as part of a wider restructuring of the electricity sector.

SEC, which is the kingdom's sole electric transmission company, said in a bourse filing on Saudi Tadawul exchange where its shares trade, that the transfer of ownership of its subsidiary would not have any material impact on its financials.

SPPC as principal buyer is responsible for managing competitive tendering of renewable and conventional energy projects and managing commercial agreements for the procurement and sale of power in the kingdom. 

The Saudi government last year announced the structural, regulatory and financial reforms for the kingdom’s electricity sector as part of a strategic shift to generating power generation using integrated renewable projects rather than fossil fuels.

(Reporting by Brinda Darasha; editing by Seban Scaria)

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