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Oman moves to reform power subsidies

The Sultanate has adopted a range of restructuring on spending and revenues after the fall in oil prices

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Oman, Subsidies, Subsidy, News

Oman has stepped up its plan to cut down electric power subsidies in a move widely expected to scale down power consumption in the Sultanate.

“Yes there are plans. There are studies already done on how to restructure the electricity tariff to make the customers more incentivised to reduce their consumption,” Mohammad Bin Abdullah Al Mahrouqi, Chairman Public Authority for Electricity and Water told Times of Oman.

Asked what percentage of the subsidy could be slashed, he said, “It is the restructuring of the tariff rather than a percentage of reduction on subsidies. It’s not decided yet when to implement it,” he said.

The Sultanate has adopted a range of restructuring on spending and revenues after the fall in oil prices.

Last month officials of government-owned Oman Power and Water Procurement Company (OPWP) said the demand for power in Oman is expected to grow by almost 10% per year until 2019.

“We are forecasting that this year we will still continue to grow (the power demand) at 8 per cent. We are a little bit cautious... we have lowered the forecast, given that we have not seen changes in the subsidy policy yet,” Eng. Ahmed bin Saleh Al Jahdhami, CEO of OPWP, told a conference on water and energy in Muscat.

In April Al Jahdhami also made a presentation on the government’s subsidy for electricity and water at Majlis Al Shura to acquaint members and staff of Shura of the services provided by the government in the areas of electricity, water and the extent of its contribution to the national economy.

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