The effects of recent policies change of electricity price on customers behavior and consumption in Saudi Arabia

Abstract

Saudi Arabia is one of the highest levels per capita in CO2 emissions and electricity uses in the world. At the same time, Saudi Arabia is one of the largest oil producers and exporters. It is also one of the largest oil consumers in the world. Based on the users’ behavior, the policymakers in Saudi Arabia must initiate significant policy changes in electric power consumption. This paper presents the data from different sources and analyses the data to correlate user behavior regarding recent changes in some energy policies. For example, in 2016, the electricity prices increased by 40% for some more significant consumers, mainly the commercial sector. In 2018, there was another increase by more than 150% on average for all customers, including the residential sector, based on different categories. The study found that the average annual increase in electricity consumption (GWh) before 2016 was 6.19%, and the average growth of annual increase was 0.51% after 2016. Further analysis was carried out to understand the strength and weaknesses of recent policy changes and their impact on users’ behaviors and consumption in Saudi Arabia.