19 January 2017
Muscat -  An estimated 10,000 government, commercial and industrial customers will no more be provided any subsidy on electricity as per the Cost Reflective Tariff (CRT) issued by the Public Authority for Electricity and Water (PAEW). The government hopes to save RO100mn annually from the decision.

The new electricity tariff system for those who consume more than 150 MWh per year came into effect from January 1. PAEW had issued a decision on the new Cost Reflective Tariff (CRT) on December 29 last year.

These estimated 10,000 consumers constitute less than one per cent of all registered customers, but consume in excess of 30 per cent of total electricity supply, and are allocated 20 per cent of total subsidy, according to Authority for Electricity Regulation (AER).

In an awareness campaign, Muscat Electricity Distribution Company (MEDC) called on its customers to check their accounts if they are applicable for the new CRT. “This is for your notice that the new CRT is approved and it is applicable for the government, commercial and industrial customers whose consumption reaches 150 MWh during a year,” the company said.

The company added that customers can visit its website and enter their details to see if the new tariff is applicable to them. MEDC is also providing a simulation module on its website which will help customers estimate their future bills.

MEDC said that CRT aims to contribute in supporting the overall government budget and enable the sector to be self independent. It added that CRT means the customer will be bearing the cost of his electricity consumption without government subsidy.

The company said that the tariff or the total cost will be equal to the bulk supply charge, plus transmission, distribution system and supply charge. “The main drive behind CRT is energy efficiency, because with the current tariff and the current structure of tariff, customers do not have an incentive to use energy efficiently,” Qais al Zakwani, AER executive director had said in October last year, during the announcement of new tariff.

Zakwani said that the rates would also depend on market demand and tariff rates will be higher during peak hours (1-5pm) than at other times. The tariffs can vary between 12bz per kWh during off-peak hours to as much as 60bz per kWh during peak hours. “We are confident that this will provide incentives to large customers to manage electricity more efficiently,” he said.

CRT customers will be provided with digital meters with automated meter reading facility. These meters can read consumption on an hourly basis.

© Muscat Daily 2017