Riyadh is splitting up state power utility SEC in the search for increased efficiency and outside investment. Subsidy cuts are curbing power demand.

Saudi Electricity Company (SEC) chairman Salih al-Awaji says the company will be broken up by the end of 2016 as part of government’s drive to increase efficiency among the kingdom’s utilities. “We expect to complete the planned privatization of assets this year,” he told Saudi satellite TV channel Al Arabiya on 31...