To improve and strengthen the power industry, in 1998, the Council of Ministers issued Resolution Number 169 for the restructuring of the electricity sector, aiming to reform its finances and increase the participation of the private sector in its ownership, management and energy conservation. The resolution stipulated the following:

• Establishment of a joint stock company for electricity to be called the Saudi Electric Company (SEC).
• Merging all the local electricity utility companies, as well as the electricity facilities owned by the General Electricity Corporation into the Saudi Electric Company.
• Creation of an independent agency during the first year of the company’s establishment to review periodically the costs and tariffs of the electricity service according to defined principles.
• Liquidation of the General Electricity Corporation. A ministerial committee would undertake the development and execution of the liquidation plan, including the settlement of its liabilities, while preserving the full rights of its staff.

In 2000, the Minister of Commerce issued Resolution Number 2047, announcing the establishment of the Saudi Electric Company.

Click here to see a table showing the increase in electricity production from 1970 to 1999.