Muscat – To improve the efficiency of the electricity sector, the Authority for Public Services Regulation (APSR) announced the success of the subsidy reorientation programme within the medium-term fiscal balance plan (2020-2024) that is in line with the economic and social conditions.

The authority announced a new tariff for residential and agricultural categories. Merger of electricity distribution and supply companies was also revealed.

APSR stated that the restructuring of the electricity subsidy for the housing category will be carried out over a period of ten years from earlier announced five years, with an increase not exceeding 2bz annually.

The authority also fixed the value of the approved tariff for electricity consumption for the residential category for the year 2022 at December 2021 tariff, which is 14bz per unit.

It also unified the electricity consumption segments for all residential category accounts, so that the value of the electricity consumption for the residential category for the year 2022 is determined on the basis of two categories.

Residential sector

According to the Government Communication Centre (GCC), the first category is concerned with the tariff of one to two accounts, which includes three segments. The first starts from 0-4000kWh at a price of 14bz per kWh and the second segment starts from 4001 to 6000kWh at a price of 17bz per kWh. The third segment is set upwards of 6000kWh at a tariff of 30bz per kWh.

The second category is concerned with the tariff of an additional account (more than two accounts), which includes three segments.

The first starts from 0-4000kWh at a price of 20bz per kWh and the second segment starts from 4001 to 6000kWh at a price of 25bz per kWh. The third segment is set upwards of 6000kWh at a tariff of 30bz per kWh.

Agricultural sector

According to GCC, the first segment starts from 0-3000 kWh at a price of 12bz per kWh and the second segment starts from 3001 to 6000kWh at a price of 16bz per kWh, while the third segment has consumption set upwards of 6000kWh priced at 24bz per kWh.

According to APSR, the decision also includes restructuring of Muscat Electricity Distribution Co, Mazoon Electricity Co, Majan Electricity Co, and Rural Areas Electricity Co (Tanweer).