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FINANCIAL NEWS
Saudi Electricity Co to split to 6 companies
28 Dec 2011
(MENAFN) CEO of Saudi Electricity Co. (SEC), Ali Bin Saleh Al-Barrak, reported the company’s restructuring plans that would split it into six firms early next year, in an attempt to boost performance through creating more competition, reported SPA.
Al-Barrak said that the six companies would be divided to four power generation firms, one firm for distribution and another one for transmission. State-controlled SEC would keep full ownership of all the new firms as a holding company. He added that there were no plans to float shares or add any partners in the near future.
The CEO noted that the plan would cost USD53.3 million. However, the generated competition would boost performance to better meet the country’s high electricity demands.
It is worth noting that SEC eyes increasing its power generation capacity by 30,000 megawatts over the coming six years.
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