Aden government approves 36-fold increase in electricity tariffs

ADEN, July 26 (YPA) – The electricity ministry of the Saudi-backed Aden government has approved a nearly 36-fold increase in household electricity tariffs, set to take effect in early August, in a move described as a major crisis for citizens amid the ongoing deterioration of services.

In a statement, the ministry said the decision was taken after directives by the head of the so-called President Leadership Council and the government, based on the funding on restructuring electricity tariffs, carried out in line with recommendations from donors and supporters, including the “Saudi Program.”

The proposal, submitted to the head of the government, Shaya al-Zindani, calls for increasing the household electricity tariff from 19 riyals to 700 riyals per kilowatt-hour — an increase of 681 riyals, which equals $2.85.

The increase also applies to various sectors, including the commercial sector, where tariffs would rise from 300 to 700 riyals per kilowatt-hour.

The proposal also includes raising monthly household service fees from 1,000 to 3,000 riyals and allocating a 20% collection commission to the electricity corporation, further increasing the financial burden on citizens amid continued power service failures and worsening living conditions.

The ministry stated that the measures are being implemented based on recommendations from electricity-sector donors and supporters, following a meeting held in Riyadh on March 26, 2026, with the so-called Saudi Program to prepare a comprehensive study on increasing electricity tariffs.

It added that the tariff increase is not only aimed at boosting revenues but is also necessary to ensure the sustainability of the electricity sector, reduce the widening financial deficit, preserve institutional assets, meet obligations, and ease pressure on the economy.

AA