In 1974 (1394 AH), the Ministry of Commerce was divided in two. One part was the Commerce Agency; the other was the Industry and Electricity Agency. In that same year, the electricity tariff was set for all companies - at a level below their actual costs.
In 1975 (1395 AH), the Government adopted ambitious plans for economic development requiring very great investment in the development of industry and electrification. The Ministry of Industry and Electricity was formed, with an Industrial Affairs Agency and an Electricity Affairs Agency. The Electricity Affairs Agency expanded the planning, co-ordination and regulatory roles in the program for providing electrical services to all parts of the Kingdom. The Electricity Corporation was established in 1976 (1396 AH) to undertake responsibility for co-ordination and achievement of the ambitious electricity plans contained in the Kingdom's Development Plan.