Oman adjusts electricity tariffs to ease burden on citizens

Household energy costs are sensitive in a country that recently saw protests over unemployment

  
Image used for illustrative purpose. Oman, Muscat, skyline.

Image used for illustrative purpose. Oman, Muscat, skyline.

Getty Images/ Hamid Al-Timami / EyeEm

DUBAI- Oman has adjusted its electricity tariffs structure to offer consumers on lower rates more supply, a government official said on Monday, following consumer complaints about steep summer bills.

Household energy costs are sensitive in a country that recently saw protests over unemployment.

The government also wants to keep the public onside as the Gulf state's ruling sultan, who assumed power last year, continues to push through reforms to ease pressure on public finances in the debt-burdened state. They include a value-added tax, introduced in April, and overhauling an expensive subsidies system.

A Public Services Regulation Authority official told a news briefing that after receiving over 5,000 complaints, authorities had decided to expand consumption categories for households in a move that would be applied retroactively to cover May and June.

Under the adjustment, consumers paying a tariff of 12 baisas ($0.03) per kilowatt/hour (kw/h) will now be able to get up to 4,000 kw/h of electricity, up from a previous cap of 2,000 kw/h.

Consumers paying a tariff of 16 baisas per kw/h will now be able to get up to 6,000 kw/h, against up to 4,000 kw/h previously.

"Most citizens fall under these two segments," Authority head Mansoor al-Hinai told reporters.

He said the body has instructed licensed firms to restore services cut off due to late bill payments during the summer.

Protests in May by hundreds of Omanis seeking employment had subsided after Sultan Haitham bin Tariq al-Said, facing his biggest challenge yet, ordered acceleration of government plans to create thousands of jobs and amid a security crackdown. urn:newsml:reuters.com:*:nL2N2NK266

(Reporting by Ghaida Ghantous; Editing by Susan Fenton) ((ghaida.ghantous@thomsonreuters.com;))


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