Oman mulls 7-eight per cent minimize in electrical energy subsidies

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By Fatma Alarimi

Oman’s cupboard is contemplating altering electrical energy tariffs to save lots of the federal government cash which it spends on subsidies, a senior official stated on Wednesday.

Qais al-Zakwani, government director of the Authority for Electrical energy Regulation, advised Reuters that the proposed change would have an effect on business, industrial and authorities customers of electrical energy consuming over one hundred fifty megawatt hours yearly – between 9,000 and 9,500 shoppers in complete.

The change would save the federal government as much as 7 or eight % of its invoice for electrical energy worth subsidies. Such subsidies totalled round 450 million rials ($1.17 billion) final yr – and that determine is an understatement as the federal government can also be promoting pure fuel used for energy era at a subsidised fee, Zakwani stated.

Finish-shoppers of electrical energy in Oman are solely paying about half of the price of producing it, he added.

“We have now began speaking to the focused segments, and they’re proud of the thought of adjusting working timings from peak hours to hours with much less electrical energy consumption, the place they may pay lower than the present flat charges.

“We’re solely ready for the inexperienced mild from the council of ministers to start out altering electrical energy meters.”

Like different Gulf states, Oman is contemplating a variety of reforms to state spending and revenues as low oil costs slash its export revenues.

The federal government posted a finances deficit of four.07 billion rials within the first eleven months of 2015, swinging from a 233.four million rial surplus a yr earlier, finance ministry knowledge confirmed this week.

(Reuters)

Supply: Press Launch

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