Merger of electricity firms to cut operational costs

Oman Saturday 10/June/2023 21:45 PM
By: Times News Service
Merger of electricity firms to cut operational costs

MUSCAT: Diesel power plants in the Sultanate of Oman will be phased out gradually as they are proving to be expensive and also harming the environment, the Chief Operating Officer (CEO) of Nama Supply said.

Speaking to Times of Oman’s sisterly radio channel Al Shabiba, Salim Said Al Kamyani, CEO of Nama Supply, said: “We plan to gradually abandon the diesel power plants in Oman in the future as part of a comprehensive initiative to review the electricity sector’s costs and restructure of the distribution and supply companies.”

The recent decision by Nama Group to merge all power supply and distribution entities will go a long way in improving the efficiency of supply and distribution of electricity besides reducing the overall operational costs.

The companies have been brought under two main companies: Nama Electricity Distribution and Nama Supply.

Al Kamyani said, “With 90 percent of subscribers receiving e-bills and 70 percent utilising electronic bill payment, the company has already made significant progress in streamlining the processes.”

Unified call centre

“Also, the unified call centre (telephone number 1011) will ensure seamless handling of requests and inquiries. It will upgrade the standard of services and will help keep pace with technical developments in the field of subscriber services,” he further add.

Al Kamyani said there has been a seamless transition of assets and employees to Nama Electricity Distribution and Nama Supply, ensuring continuity of business operations and projects.

Collaborating with key government agencies, Nama Group went for the merger of various companies to optimise resources and enhance overall performance.

The two main companies – ‘Nama Electricity Distribution’ and ‘Nama Supply’ – incorporated and replaced the following companies: Muscat Electricity Distribution Company, Mazoon Electricity Company, Majan Electricity Company, and Tanweer Company.

Nama Group had earlier 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.

Low-voltage networks

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

“Under the restructuring plan, one company will focus on supply services, including billing and collection operations, while the other will specialise in distribution services. This strategic realignment aims to reduce costs, enhance system efficiency, improve services, and elevate customer satisfaction,” said Al Kamyani.