Riyadh Steel expects higher costs from revised electricity tariffs

Saudi Arabia's Riyadh Steel Co. expects revised electricity tariffs to increase its annual energy costs by approximately SAR 1.365 mln (USD 0.36 mln) in 2027, while changes to water tariffs are not expected to have a material financial impact.

The revised industrial electricity tariff, effective January 1, 2027, will rise by 15pct to SAR 0.23 per kWh from SAR 0.20 per kWh for users connected to the electricity transmission or distribution network. Fixed monthly charges will also vary according to circuit breaker capacity and customer category.

The National Water Company has also announced revised water and wastewater tariffs, effective on the same date, covering residential, non-residential and government customers.

Riyadh Steel said the actual financial impact may vary depending on consumption levels, operating costs and other relevant factors. The company is studying options to mitigate the additional costs and improve operational spending efficiency.

Riyadh Steel has a total annual capacity of 220,000 tons of sheared scrap, 105,000 tons of billets, and 90,000 tons of angle and flat bars.

1 USD / 3.75 SAR