Jointly reforming the prices of industrial fuels and residential electricity in Saudi Arabia

摘要: Abstract The Saudi electricity sector currently buys fuel and sells at prices administered by the government. In this analysis, we illustratively explore combining reform of used in power plants with implementation alternative pricing schemes for households. Compared to scenario replicating year 2015, find: • aggregate gain energy system could reach nearly $12 billion per raising both households industrial fuels reflect cost supply or international markets. Households would pay an additional $3 costs without any mitigation low-income However, Lifeline halve burden, while maintaining greater gains than deregulating alone. average price paid under lifeline be a more manageable 4.0 cents/kWh, versus marginal-cost 7.1 cents/kWh. scenarios study, natural gas usage utilities falls, allowing flow other industries, which consume it reduce their costs. We find marginal values falling higher prices, indicating that is becoming less constraining.