Friday 26 / April / 2024
Muscat: Citizens and residents across the Sultanate of Oman have welcomed the reduction in power tariffs for all sections of consumers.
The announcement regarding cut in tariffs was made by the Ministry of Energy and Minerals following a review of the general policies of the power sector.
The Public Services Regulatory Authority formulated regulations for expanding the timeframe (from 5 to 10 years) of the residential units’ electricity sector subsidy programme. One of the major decisions was to unify the electricity consumption segments for all residential category accounts (citizens and expats).
The first class/ category includes the original account’s tariff (for two or less accounts) and this comprises three segments. The first segment ranges from zero to 4,000 kilowatt at a rate of 14 baisas per kw/h; the second from 4,001 to 6,000 kw at a rate of 17 baisas for each kw/h and the third from 6,000 kw onwards at a rate of 30 baisas for each kw/h. Earlier, the tariff value for the first section was 19 baisas per kw/h.
The additional account’s tariff (for more than two accounts) comprises three segments: the first for consumption from zero to 4,000 kw at a rate of 20 baisas for each kw/h, the second for 4,001 to 6,000 kw at a rate of 25 baisas for each kw/h and the third for consumption of more than 6,000 kw at a rate of 30 baisas for each kw/h.
The electricity tariff for the residential category will be calculated as on 1 January 2022. The system of national subsidy granted to entitled categories continues as prescribed. A subscriber from the exempted categories has a right to select one account for which “additional subsidy” will apply.
As for the agricultural sector, the Cost Reflective Tariff (CRT) has been cancelled (the non-subsidised tariff) for all consumers. Instead new tariffs will apply which are as follows:
The first category ranges from zero to 3,000 kw/h at a rate of 12 baisas for each kw/h; the second from 3,001 to 6,000 kw at a rate of 16 baisas a kw/h and the third from 6,000 kw onwards at a rate of 24 baisas kw/h.
The authority also announced the expansion of the time range of the subsidy redirection programme for the residential category (lifting electricity subsidies) from five years to ten years, with an increase in the tariff at a rate not exceeding 2 baisas annually.
The authority said in a statement that these policies aim to achieve the programme of redirecting electricity subsidies to the eligible categories, which is part of the medium-term financial balance plan (2020-2024).
