The announcement regarding the reduction in tariffs was made by the Ministry of Energy and Minerals following a review of general policies in the electricity sector.

Muscat: Citizens and residents of the Sultanate of Oman welcomed the reduction in electricity tariffs for all categories of consumers.

The announcement regarding the reduction in tariffs was made by the Ministry of Energy and Minerals following a review of general policies in the electricity sector.

The Utilities Regulatory Authority has formulated regulations to extend the duration (from 5 to 10 years) of the electricity sector subsidy program for residential units. One of the major decisions was to unify the electricity consumption segments for all accounts in the residential category (citizens and expatriates).

The first class/category includes the original account fare (for two accounts or less) and this includes three segments. The first segment goes from zero to 4,000 kilowatts at a rate of 14 baisa per kw/h; the second from 4,001 to 6,000 kw at the rate of 17 baisa for each kw/h and the third from 6,000 kw at the rate of 30 baisa for each kw/h. Previously, the tariff value for the first section was 19 baisa per kw/h.

The tariff for the additional account (for more than two accounts) comprises three tranches: the first for consumption from zero to 4,000 kw at the rate of 20 baisa for each kw/h, the second for 4,001 to 6,000 kw at the rate of 25 baisa for each kw/h and the third for consumption over 6,000 kw at a rate of 30 baisa for each kw/h.

The electricity tariff for the residential category will be calculated on January 1, 2022. The national subsidy system granted to eligible categories continues as planned. A subscriber of the exempted categories has the right to select an account for which an “additional subsidy” will apply.

As for the agricultural sector, the Cost Reflective Tariff (CRT) has been abolished (the non-subsidized tariff) for all consumers. Instead, new rates will apply as follows:

The first category goes from zero to 3,000 kw/h at the rate of 12 baisas for each kw/h; the second from 3,001 to 6,000 kw at the rate of 16 baisa per kw/h and the third from 6,000 kw at the rate of 24 baisa kw/h.

The authority also announced the extension of the time slot of the subsidy redirection program for the residential category (elimination of electricity subsidies) from five years to ten years, with an increase in the tariff at a rate not exceeding 2 kisses per year.

The authority indicated in a press release that these policies aim to carry out the program of reorientation of electricity subsidies towards the eligible categories, which is part of the medium-term financial equilibrium plan (2020-2024). .