With the establishment of the Authority for Electricity Regulation, Oman, the structure of the Electricity sector in the country has changed quite dramatically, and more specifically in the Main Interconnected System, which is in the North of Oman. Since the Authority’s establishment in 2005, there has been better security of supply of electricity. The electricity sector has developed and become more open to international and private investors. The efficiency, both financially and technically, has increased substantially. This is evident in the technical and non-technical losses’ continuous decrease since 2005. The electricity sector has contributed positively in the development of Oman’s capital markets , as well as state finances. This is evident in the lower subsidy (due to higher efficiency); better use of subsidy; increased revenues from taxes and duties, and less government borrowing. Customers are now receiving better quality services as well as having a better opportunity to complain to various parties. The possibilities for employment and training have improved, and the electricity sector is giving more attention to the environment now and taking better care of it. The points mentioned above have all been studied and analysed in the 2007 report by Ministry of National Economy titled Assessment of Electricity Sector Reform of Oman.
In addition to the points mentioned above, other benefits have also floated throughout the years. These include fairer competitions for new IWPPs and stricter policies against any conflicts of interest. Health and Safety audits undertaken by the Authority for Electricity Regulation have shown various inadequacies in electricity companies, and they are now being monitored more closely with each fatal incident fully investigated. Amounts of gas consumed for generating electricity have also decreased substantially.Finally, those with special needs are now given extra attention and exempted from many responsibilities (such as financial payments).
|