Why the GCC's electricity pricing policy is 'unsustainable' - Arabianbusiness

Why the GCC's electricity pricing policy is 'unsustainable' - Arabianbusiness:

The current electricity pricing policy in the Gulf Cooperation Council (GCC) countries is unsustainable as decades of subsidies have led to high consumption rates and wasted power, costing billions of dollars, according to a new study.

The report by Strategy& Middle East, part of the PwC network, said the region needs reform to achieve its ambitious industrialisation agenda and have an economically viable electricity sector.

It highlighted an "erroneous perception" among large industrial companies that pricing reforms will put them at a competitive disadvantage thus creating a large resistance to them.

The research estimates that the electricity subsidies have cost GCC countries more than $120 billion over the past 20 years, and leaving these policies in place until 2030 would cost an additional $150 billion as demand increases.