Abstract
One of the most important functions of transmis sion systems is to provide electrical energy with an ac ceptable power quality. From the early 1990's, the North America and other countries have had the trend of deregu lated services. Deregulation in Saudi Arabia has started only 1998. The aim of this paper is to study the electric power industry restructuring and deregulation in terms of electricity tariff and prices. This is done by adopting the main principles associated with electricity deregulation considered in the well-known markets in some countries. The paper proposes a new formulation for the industrial electricity tariff in Saudi Arabia considering the local partial implementation of the market liberalization and based on experiences in other countries.