Muscat – Nama Group – the sultanate’s holding company for electricity generation, transmission, distribution and supply companies – is currently working on the implementation of government directives regarding the merger of electricity distribution and supply companies.

An official source from Nama Group confirmed to Oman News Agency that the distribution and supply companies affiliated to Nama Group will be merged into two entities – one supply company and another for distribution to all governorates except Dhofar – with the aim of enhancing efficiency and reducing operational and administrative costs.

The source told that the initiative to restructure the distribution and supply companies came within the package of initiatives aimed at reviewing the costs of the electricity sector.

He added that Nama Group is working with a number of government agencies, represented by the Ministry of Energy and Minerals, Oman Investment Authority and the Authority for Public Services Regulation, to implement all initiatives including the merger of distribution and supply companies.

There are currently four electricity distribution and supply companies in the sultanate (excluding for Dhofar Governorate), he said.

‘After restructuring, there will be one company for supply services, which is represented in billing and collection operations, and the second company will specialise in distribution services,’ the official added.

He explained that the restructuring initiative aims to reduce the costs of the electricity sector in the medium-term, boost the efficiency of the system, develop services, and increase subscribers’ satisfaction level.

He pointed out that Nama Group has recorded many achievements with regards to customer satisfaction. The year 2021 witnessed further development of technologies for billing and payment services which made it easier for subscribers to receive and pay their bills online.

He noted that more than 88 per cent of all invoices during 2021 were sent to subscribers via email or SMS, which is an 18 per cent increase from 2020.

He indicated that subscribers’ use of electronic payment channels has increased substantially. More than 63 percent of all payments collected from subscribers by distribution companies were made through electronic channels in 2021.