RIYADH: Saudi Arabia’s Ministries of Finance and Energy have fully nationalized the Saudi Power Procurement Co. after buying up shares in one of the firm’s subsidiaries.

The ministries announced the government has snapped up the Saudi Electricity Company, meaning Saudi Power Procurement Co., will be wholly owned by the state.

This comes as part of the Kingdom’s plan of restructuring the electricity sector and introducing financial and organizational reforms, the Ministry of Energy said in a statement. 

The Saudi Power Procurement Co. will be responsible for planning and putting forward projects to generate the required electric power.

It will also be responsible for concluding electric power purchase and wholesale agreements, developing energy trading markets and purchasing fuel for the company, the statement added. 

It will contribute to achieving the objectives of an optimal energy mix, displacement of liquid fuels and raising of the level of environmental compliance.

It will also encourage internal and external investments, increase the percentage of localization, and ensure the security and reliability of supplies at the lowest costs.

Last June, the Saudi Electricity Co. transferred its entire stake in the Saudi Power Procurement Co. to the government.

SPPC as then, became an independent company wholly owned by the government, following completion of all legal arrangements for sale and transfer of assets, liabilities, and contracts.