Article 32 of the Saudi Water Law

This article regulates how the tariff for water sources is set. According to Article 1, a tariff is an approved financial charge paid for a service or for a unit quantity of water used.

Under paragraph (1), the tariff is proposed by the Ministerial Committee, which according to Article 1 is a committee chaired by the Minister of Environment, Water and Agriculture and including the ministers of Energy, Industry and Mineral Resources, Economy and Planning, Finance, and Municipal and Rural Affairs, and which then submits it to the Council of Ministers for approval. In making its proposal, the Committee must take into account:

• The principle of rationing water and conserving its sources and their sustainability.
• The rate of essential water need of persons, projects and economic activities.
• The requirements of national development policies and strategies.
• The costs of producing, transporting, distributing and storing water and protecting its sources.
• The economic circumstances of low-income people.
• The water sources used and their quality.
• The actual quantity consumed.
• The nature of the economic activity using the water and the ways of obtaining water and its services.

Paragraph (2) requires the Committee to carry out a periodic review of this tariff at least once every five years, meaning five years may not pass without a review.

The article does not state tariff amounts; it sets only the competent body and the criteria. Article 33 differs from it, since it makes approval of the tariffs for service provision activities a matter for the Authority. Anyone with a question about how the tariff applies to his activity can consult a lawyer who specializes in water regulations and administrative cases.