Electricity companies have started notifying their customers about the reduction in tariffs for consumer segments based on the recent Council of Ministers’ decision to provide additional support to reduce electricity consumption costs for subscribers with two accounts or less in the residential category. There would be a reduction of 15 per cent from May 1 to August 31.
Muscat Electricity Distribution Company has issued an alert to its subscribers in the Governorate of Muscat. The company said the tariff for all consumer segments will be reduced by 15 per cent for the basic account (two accounts or less) of the residential category for the summer months, noting that the tariff reduction will not include consumption before May.
The approved tariff for electricity for the residential category includes three segments. The first is for consumption that starts from zero to 4,000 kilowatts at a price of 14 baisas per kilowatt, the second is for consumption from 4,001 to 6,000 kilowatts at a price of 17 baisas per kilowatt, and the third is for the consumption from 6,000 kilowatts at a price of 30 baisas per kilowatt.
In January, the Sultanate of Oman extended the period for gradual lifting of subsidies on electricity for the residential category from five years to ten years while eliminating the distinction between Omanis and others in calculating the tariff.
According to the results of tariff review and electricity sector governance issued by the Government Communication Centre, Ministry of Information, the period of redirecting the subsidy has been doubled, provided that the electricity tariff approved for the residential category continues during the current year at the same tariff level in December 2021.
Extending the period of restructuring the electricity subsidy will be paralleled with the rate of increase in the tariff that does not exceed two baisas annually, and with unification of the electricity consumption segments for all accounts of the residential category.
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