APSR introduces new electricity tariff regulations

Muscat: The Authority for Public Services Regulation (APSR) has issued Decision No. 2024/43, announcing the implementation of a new cost-reflective tariff regulation.

Key provisions include:

Article 1
The new regulation mandates the application of cost-reflective tariffs to non-residential electricity subscribers consuming over 100 megawatt hours annually. Subscribers can opt for one of the following tariff structures:

A variable tariff based on the cost-reflective structure.

A fixed seasonal tariff (summer and winter) based on load levels.

A fixed non-seasonal tariff (applicable year-round) based on load levels.

The regulation defines non-residential use as electricity consumption for purposes such as government, commercial, industrial, and tourism activities, regardless of whether the property is designated residential or non-residential.

Article 2
The cost-reflective tariff will be calculated using the following formula:
Cost-reflective tariff = Wholesale electricity supply cost + Transmission cost + Distribution cost + Supply cost

The APSR will announce the tariffs for the upcoming year by the end of December, outlining specific rates for various consumption periods and categories. Fixed amounts for certain costs may also be determined.

Article 3
Exceptions to the standard tariff structure may be made for specific non-residential categories, subject to approval by the Council of Ministers.

Article 4
By the end of December each year, the APSR will publish detailed calculations of the tariffs for the following year. This will include the breakdown of costs for the Oman Power and Water Procurement Company, the Oman Electricity Transmission Company, and other licensed electricity distributors and suppliers. The information will be made available on the APSR website or other designated platforms.

Article 5
The APSR reserves the right to issue additional rules or guidelines to clarify the tariff application process or ensure proper implementation. These will also be published on the APSR website or through other channels.

The new regulation supersedes any previous rules that conflict with its provisions, marking a significant step towards ensuring fair and transparent electricity pricing in Oman.