Muscat: The Authority for Public Services Regulation (APSR) has released Decision No. 2024/43, which introduces a new regulation for cost-reflective tariffs.
Key provisions include:
Article 1
This regulation requires the implementation of cost-reflective tariffs for non-residential electricity users with an annual consumption exceeding 100 megawatt hours. Subscribers have the option to choose from the following tariff structures:
- A variable tariff aligned with the cost-reflective model.
- A fixed seasonal tariff (for summer and winter) based on load levels.
- A fixed non-seasonal tariff (applicable throughout the year) based on load levels.
Non-residential use is defined as electricity consumption for activities such as government, commercial, industrial, and tourism, irrespective of whether the property is classified as residential or non-residential.
Article 2
The calculation of the cost-reflective tariff will follow this formula:
Cost-reflective tariff = Wholesale electricity supply cost + Transmission cost + Distribution cost + Supply cost
The APSR will publish the tariffs for the forthcoming year by the end of December, detailing specific rates for different consumption periods and categories. Fixed amounts for certain costs may also be established.
Article 3
The standard tariff structure may be adjusted for certain non-residential categories, pending approval from the Council of Ministers.
Article 4
By the conclusion of December each year, the APSR will release comprehensive calculations of the tariffs for the upcoming year. This will encompass a detailed breakdown of expenses for the Oman Power and Water Procurement Company, the Oman Electricity Transmission Company, and other licensed electricity distributors and suppliers. The information will be accessible on the APSR website or other specified platforms.
Article 5
The APSR maintains the authority to establish additional rules or guidelines to elucidate the tariff application process or to ensure effective implementation. These will also be made available on the APSR website or through other communication channels.
This new regulation replaces any prior rules that may conflict with its provisions, representing a significant advancement towards achieving fair and transparent electricity pricing in Oman.
