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Home Oman News

Oman’s regulator obliges power distributors to pay compensation for poor service

6 يوليو، 2022
in Oman News
Oman’s regulator obliges power distributors to pay compensation for poor service

@conradprabhu –

Electricity subscribers are now entitled to compensation from licensed distributors under new Guaranteed Service Level Standards that came into effect in the Sultanate of Oman from July 1, 2022.

Introduced by the Authority for Public Services Regulation (APSR), the new standards are applicable to licensed distributors: Muscat Electricity Distribution Company (MEDC), Majan Electricity Company, Mazoon Electricity Company, Rural Areas Electricity Company (Tanweer) and Dhofar Integrated Services Company — all members of Nama Group.

The new standards encompass a total of around 10 customer service criteria that licensed electricity distributors must meet if they are to avoid paying compensation to their subscribers for any breaches. These criteria pertain to, among other conditions, meter reading, handling of customer complaints, processing of new electricity connection applications, delayed reconnections, notification of customers in the event of planned and unplanned outages and so on.

Breaches of these standards entitle the aggrieved subscriber to claim compensation amounts ranging from RO 5 to RO 30 per episode — amounts that can also be adjusted against the customer’s monthly bills.

In issuing the new standards, the regulator cited Article 22 of the Law on the Regulation and Privatisation of the Electricity and Related Water Sector, which guarantees certain minimum standards in the supply of electricity and related water services to consumers across the Sultanate of Oman. It particular, it seeks to safeguard the interest of subscribers, in particular, low-income individuals, the sick and the elderly.

“The objective of setting these standards is to protect electricity service subscribers from receiving low levels of service. It will also contribute to motivating (distribution) licensees to address the poor quality of services provided by them for subscribers of electricity services in the Sultanate of Oman”, the Authority noted.

For example, the new standards prescribe strict timelines and targets for acting on complaints submitted by consumers. Failure to meet these deadlines will result in the licensees being forced to cough up the stipulated compensation to the customers.

Additionally, subscribers are required to be notified of any planned periodic outages at least two day in advance, either through announcements in the local media, short text messages (SMS), posts on their social media platforms or other suitable channels. However, compensation is waived where the planned outage is of one hour or less for subscribers associated with low voltage (voltage 0.415 kV) and half an hour or less for subscribers connected to high voltage (voltage 11 kV) and more).

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