Electricity Tariffs
Transmission Use of System Charges
Pursuant to Condition 25 of the Electricity Transmission and Dispatch Licence, Oman Electricity Transmission Company (“OETC”) is required to issue statements annually setting out Transmission Use of System charges (“TUoS”) which reflects the cost of making capacity available, installing and/or maintaining metering equipment and other services associated with use of its Transmission System. In addition, TUoS charges provide a reasonable rate of return on capital represented by such costs assuming the company performs its functions efficiently.
Distribution Use of System Charges
Pursuant to Condition 30 of the Distribution & Supply Licence, Licenced Distribution companies are required to issue statements annually setting out the Distribution Use of System charges (“DUoS”) which reflect the cost of carrying out any work extension, reinforcement of Distribution System or the provision and installation, maintenance and repair or removal following disconnection of Electricity Lines, Electric Plans or meters. In addition, DUoS charges provide a reasonable rate of return on capital represented by such costs assuming the company performs its functions efficiently.
Below are the approved 2016 DUoS charges for the three MIS licensed distribution companies and Dhofar Power Company
Bulk Supply Tariff
Bulk Supply Tariffs (“BST”) relate to the tariff charged by a Licensee for the Bulk Supply of electricity or Desalinated water which tariff shall be calculated as prescribed in the Licensee’s respective License and the Sector Law and are required to be approved by the Authority.
Every year the Authority approves four Bulk Supply Tariffs: (i) MIS electricity BST, (ii) Dhofar electricity BST, (iii) Water BST by PWP and (iv) Water BST by RAEC.
Pursuant to Article 74 of the Sector Law and Condition 21 of the Power and Water Procurement License, Oman Power and Water Procurement Company (“OPWP”) is required to make Bulk Supply of electricity to Licensed Suppliers and Bulk Supply of Desalinated water to water departments all at Bulk Supply Tariffs approved by the Authority.
Furthermore, Pursuant to Article 84 of the Sector Law and Condition 41 of the Rural Areas Electricity Company Licence the Rural Areas Electricity Company (“RAEC”) is required to sell Desalinated water to water departments at a Bulk Supply Tariff approved by the Authority.