Merger, restructuring of companies to cut costs, raise efficiency

Muscat: Outlining the merger and restructuring of electricity distribution and supply companies, Nama Holding Group informed during a press conference on Tuesday that two main companies—‘Nama Electricity Distribution’ and ‘Nama Supply’—have now incorporated and replaced Muscat Electricity Distribution Company, Mazoon Electricity Company, Majan Electricity Company and Tanweer Company.

Nama said that the new structure applies to the management and supply of electricity services in all governorates of Oman, except for Dhofar Governorate where electricity, water and waste services are provided through Nama Dhofar Services Company.

Ahmed Amer Al Mahrezi, Acting CEO of Nama Group, affirmed that the assets and employees of the abovementioned companies were distributed to the two new companies (“Nama Electricity Distribution” and “Nama Supply”), each according to its specialisation.

The process ensures uninterrupted flow of business and projects, said Al Mahrezi, noting that the group was keen to accomplish this merger in cooperation with the authorities concerned, namely the Ministry of Energy and Minerals, Oman Investment Authority and the Authority for Public Services Regulation.

Al Mahrezi added that the merger will help revise the costs of the electricity sector in the medium term, raise the efficiency of the electricity system, upgrade the standard of services and develop them to keep pace with technical developments in the field of subscriber services.

Nama Electricity Distribution will shoulder the responsibility of providing distribution services and related matters, like regulating electricity meters and establishing low-voltage networks and transformers to ensure the reliability of services rendered to subscribers, said Al Mahrezi. He added that Nama Supply will handle billing and collection operations.

For his part, Alaa Hassan Al Lawati, CEO of Nama Electricity Distribution Company, said that this merger will unify all services related to the distribution of electricity networks, in addition to addressing technical challenges. He pointed out that the company’s assets exceed OMR2bn. 

In his turn, Salim Said Al Kamyani, CEO of Nama Supply Company, said that the process of merging electricity supply companies will reflect positively on the system of services. Citing examples, he noted that the proportion of issuance of electronic electricity touches 90%, the collection of electricity bills electronically reaches 70% while the call centre has been unified to receive requests and queries.

Through the restructuring, Nama Group sought to cover all aspects related to the electricity sector, its services and activities to unify all electricity services under the name of “Nama Services”, with the firm acting as one-stop-shop for all subscribers. The company will have a uniform service hall for subscribers and it will establish an electronic platform (Nama Platform) to provide a unified service, exclusively related to the electricity sector.