Study on Renewable Energy Resources, Oman - authority for ...
Study on Renewable Energy Resources, Oman - authority for ...
Study on Renewable Energy Resources, Oman - authority for ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>Renewable</strong> <strong>Energy</strong> <strong>Resources</strong> in <strong>Oman</strong><br />
• Public interest regulati<strong>on</strong> of the electricity sector. The sector law established<br />
an Authority to regulate the electricity sector, and a licensing regime<br />
through which the Authority can authorize pers<strong>on</strong>s wishing to undertake activities<br />
stipulated in the sector law as regulated activities.<br />
• The sector law also ensures that the Government remains resp<strong>on</strong>sible <strong>for</strong> all<br />
matters relating to customer tariffs, <strong>for</strong> the approval of interc<strong>on</strong>necti<strong>on</strong>s with<br />
neighbouring countries, and <strong>for</strong> the approval of any further changes to the<br />
structure of the electricity market.<br />
Article 18 of the Sector Law implements a mechanism through which the Ministry<br />
of Finance provides electricity subsidies, calculated by the Authority to licensed<br />
suppliers (Muscat, Majan, Mazo<strong>on</strong> and RAECO) <strong>on</strong> an annual basis. The<br />
Authority undertakes two separate subsidy calculati<strong>on</strong>s: the first calculates the<br />
subsidy to Muscat, Majan and Mazo<strong>on</strong> distributi<strong>on</strong> companies and the sec<strong>on</strong>d<br />
calculates the subsidy to RAECO.<br />
The subsidy is defined as the difference between the ec<strong>on</strong>omic cost of supply<br />
(including financing costs) and Permitted tariff (and other) revenue. Ec<strong>on</strong>omic<br />
supply cost are derived from OPWP, OETC and Muscat, Majan, and Mazo<strong>on</strong><br />
price c<strong>on</strong>trol Maximum Allowed Revenue (MAR). Subtracting customer tariff<br />
revenue (and other sources of income) from the MAR identifies the electricity<br />
subsidy required in a particular year.<br />
The maximum tariff (permitted tariff) is approved by the Council of Ministers<br />
and shown in Table 3.5. No new permitted tariff was implemented in 2006.<br />
Table 3.5 Permitted Tariff <strong>for</strong> Electricity Supply - 2006, Ref /3/<br />
A: Permitted Tariffs <strong>for</strong> Electricity Supply<br />
Permitted Tariff Category<br />
Industrial 1<br />
Com m ercial<br />
Ministry of Defence<br />
Residential<br />
Gove rnm e nt<br />
Agriculture & Fisheries<br />
Tourism 2<br />
Tariff Structure<br />
All Regi<strong>on</strong>s except Dhofar<br />
Dhofar Regi<strong>on</strong><br />
September to April: 12 Baiza per kWh<br />
August to March: 12 Baiza perkWh<br />
May to August: 24 Baiza per kWh<br />
A pril to July: 24 Baiza per kWh<br />
Flat rate @ 20 Baiza per KWh<br />
Flat rate @ 20 Baiza per KWh<br />
0-3000 kWh 3001-5000 kWh 5001-7000 kWh 7001-10000 kWh above 10000 kWh<br />
10 Bz / kWh 15 Bz / kWh 20 Bz / kWh 25 Bz / kWh 30 Bz / kWh<br />
0-3000 kWh 3001-5000 kWh 5001-7000 kWh 7001-10000 kWh above 10000 kWh<br />
10 Bz / kWh 15 Bz / kWh 20 Bz / kWh 25 Bz / kWh 30 Bz / kWh<br />
0-7000 kWh<br />
7001 kWh & above<br />
10 Baiza per kWh 20 Baiza per kWh<br />
0-3000 kWh 3001-5000 kWh 5001-7000 kWh<br />
above 7001 kWh<br />
10 Bz / kWh 15 Bz / kWh 20 Bz / kWh<br />
20 Bz / kWh<br />
1 Customers require a MOCI letter of recommendati<strong>on</strong> and must maintain a power factor of least 0.9<br />
2 Subject to Ministry of Tourism regulati<strong>on</strong>s and approval<br />
B: Permitted Tariff fees <strong>for</strong> Disc<strong>on</strong>necti<strong>on</strong> & Rec<strong>on</strong>necti<strong>on</strong> of accounts<br />
Disc<strong>on</strong>necti<strong>on</strong> fee (all types of metered accounts): 7.500 Rial <strong>Oman</strong>i<br />
Rec<strong>on</strong>necti<strong>on</strong> fee (all types of metered accounts): 7.500 Rial <strong>Oman</strong>i<br />
Page 44 of 134<br />
.