Phase 1: In the period before the formulation of the Government's development plans, the generation of electricity was left to small local companies working on a solely commercial basis. Such companies were to be found in Saudi Arabian towns and villages, selling the power they produced at varying rates according to the local cost of electricity generation.
In 1961 (1381 AH), a Department of Electricity Affairs was established within the Ministry of Commerce, with a mandate to establish rules and regulations to govern the activities of the electricity generation sector, to issue permits and licenses to electricity companies and to encourage national investment in electric power generation.
