Saudi Electricity Company Receives Approval for Higher WACC of 6.65% (2024-2026), Boosting Revenues and Financial Sustainability
The Saudi Electricity Company (SEC) has been given approval for a new regulated weighted average cost of capital (WACC) of 6.65% for the years 2024-2026.
This is an increase from the previous WACC of 6% for the years 2021-2023.
The Minister of Energy, who is also the Chairman of the Ministerial Committee for the Electricity Sector and SEC, made the decision.
The increase in WACC is expected to positively impact SEC's revenues due to the expansion of its regulated asset base and contribute to its financial sustainability and future growth.
The Mudaraba Agreement between SEC and the government sets the annual profit margin for the Mudaraba instrument at 5.15% during this period.
Eng.
Khalid bin Hamad Al-Gnoon, CEO of the Saudi Electricity Company (SEC), expressed gratitude for regulatory approval of SEC's strategic investment plans.
He emphasized that SEC's framework prioritizes operational efficiency, customer service quality, and reliability.
The plans align with international best practices and Vision 2030 for sustainable development of Saudi Arabia's electricity sector.
The CEO acknowledged the support of Saudi leadership, particularly the Minister of Energy, in fostering growth and development in the electricity market.
The Minister of Energy, who is also the Chairman of the Ministerial Committee for the Electricity Sector and SEC, made the decision.
The increase in WACC is expected to positively impact SEC's revenues due to the expansion of its regulated asset base and contribute to its financial sustainability and future growth.
The Mudaraba Agreement between SEC and the government sets the annual profit margin for the Mudaraba instrument at 5.15% during this period.
Eng.
Khalid bin Hamad Al-Gnoon, CEO of the Saudi Electricity Company (SEC), expressed gratitude for regulatory approval of SEC's strategic investment plans.
He emphasized that SEC's framework prioritizes operational efficiency, customer service quality, and reliability.
The plans align with international best practices and Vision 2030 for sustainable development of Saudi Arabia's electricity sector.
The CEO acknowledged the support of Saudi leadership, particularly the Minister of Energy, in fostering growth and development in the electricity market.
Translation:
Translated by AI
