Utility bills are a predictable but seasonal cost of living in the Kingdom, spiking every summer when the air conditioning runs day and night. This guide sets out the 2026 Saudi Electricity Company and National Water Company residential tariffs, how to read your bill, the quickest ways to pay, and the simple habits that keep costs down.
The good news for residents is that Saudi Arabia keeps household electricity heavily subsidised, so the base rate is low by international standards. The challenge is the climate: cooling a home through a Gulf summer is where most of the annual bill is generated, and that is the part you can actually influence.
SEC residential electricity tariff
The Saudi Electricity Company applies a simple two-tier residential tariff in 2026. The rate steps up only once your monthly usage crosses 6,000 kWh, which is why heavy summer cooling can push a bill sharply higher.
| Monthly consumption | Rate |
|---|---|
| 1 to 6,000 kWh | 18 halalas (SAR 0.18) per kWh |
| Above 6,000 kWh | 30 halalas (SAR 0.30) per kWh |
A meter service fee of around SAR 10 and 15% VAT are added on top. For most flats and modest villas outside peak summer, consumption stays inside the first tier, keeping the effective rate low.
Why summer bills jump
Air conditioning is by far the largest household load in Saudi Arabia. A large villa cooling multiple rooms through July and August can exceed the 6,000 kWh threshold, so part of the usage is billed at the higher 30-halala rate. Setting the thermostat a few degrees higher, servicing AC units and using timers are the practical ways to keep bills within the lower tier. As a rough guide, an apartment typically stays well inside the first tier year-round, while a large, fully cooled villa is the household most likely to spill into the higher band during peak summer months.
How to read your electricity bill
Your SEC bill shows the meter reading, the kWh consumed in the period, the split between the two tiers, the meter service fee and VAT. If a bill looks abnormally high, check the reading against your meter, as an estimated reading can overstate usage and self-correct the following month. Comparing your monthly kWh across the year quickly shows how much of the bill is simply summer cooling.
NWC water charges
Water and sewerage are billed by the National Water Company on a tiered structure, with residential rates rising from around SAR 1 per cubic metre at the lowest block up to about SAR 6 per cubic metre at higher consumption. A sewerage charge equal to roughly half the water charge is added, and then 15% VAT applies to the total. Because the blocks escalate, cutting waste on irrigation and long showers meaningfully lowers the bill. Many villas also top up from tanker deliveries in areas with limited mains supply, which is a separate cash cost on top of the metered NWC charge.
How to pay
- SEC app and website: view and pay your electricity bill with a mada card or Apple Pay.
- NWC app: the equivalent for water and sewerage bills.
- SADAD: pay either bill through online or mobile banking using the SADAD biller number on your statement.
- ATMs: most bank ATMs accept SADAD utility payments.
Paying through your bank app via SADAD is usually the fastest route, and you can set reminders to avoid disconnection.
Setting up a new connection
When you move into a new home, register the SEC and NWC accounts in your name so bills and any deposit sit with you rather than a previous tenant. You will need your iqama and the property details from your Ejar rental contract. A new electricity connection may require a refundable deposit and a wiring inspection, while transferring an existing meter is quicker. Always check for outstanding balances before taking over an account, as unpaid dues can transfer with the meter and land on your first bill.
Simple ways to cut the bill
- Set the thermostat to 24 degrees rather than lower, and use timers so the AC is not cooling empty rooms.
- Service and clean AC filters before summer so units run efficiently.
- Switch to LED lighting and run washing machines on full loads.
- Fix dripping taps and limit garden irrigation to keep water inside the lower NWC blocks.
Small changes add up over a Gulf summer, and because the top electricity tier costs almost double the base rate, keeping usage under the 6,000 kWh line is the single most effective saving a household can make.
Bottom line
Electricity is cheap in the lower tier at 18 halalas per kWh but doubles above 6,000 kWh, so summer AC discipline is where the savings are. Register utilities in your own name, pay via the SEC and NWC apps or SADAD, and factor these seasonal swings into your budget. For the full picture, see our Riyadh cost of living breakdown and our Saudi expat guide.
