Saudi Arabia will raise electricity and water tariffs from January 1, 2027, as the government moves to ease its subsidy bill amid a widening budget deficit.
The increase comes with extra monthly support for households and public-sector workers, a mix that could reshape living costs and business expenses across the Kingdom.
The new rates
Residential electricity prices will rise by nearly 17% for monthly consumption of up to 6,000 kilowatt-hours.
Rates for consumption above that threshold will increase by 10%, and new fixed monthly meter charges will also apply.
The offset
Authorities approved an additional 500 Riyals ($133) a month for covered government employees, military personnel and retirees.
Eligible social security households will also receive 500 Riyals in monthly support.
Why now
Riyadh expects a deficit of 245 billion Riyals this year, 80 billion Riyals above its original forecast, amid war-related disruptions and heavy Vision 2030 spending.
Higher tariffs could ease the subsidy burden, while the monthly payments cushion the impact on eligible Saudis.
The bigger picture
The changes will hit households differently depending on electricity use, meter charges and eligibility for support.
Businesses could also face higher operating costs, particularly in energy-intensive sectors.
