MUSCAT: Starting January 1, 2025, Oman will implement updated electricity pricing rules designed to streamline rates across various sectors. The decision comes as part of an effort to align the electricity tariffs with the public interest and the Law Regulating and Privatizing the Electricity and Related Water Sector (Royal Decree No. 78/2004). The new pricing structure replaces the previous tariff list, offering a more consistent approach to electricity rates for residential, non-residential, agricultural, and fisheries sectors, ensuring fairness and transparency across all categories.
Under the new tariff system, the residential category has been divided into basic and additional accounts. For basic accounts, rates for consumption up to 4,000 kWh will be set at 14 baisas per kWh. The rate increases to 18 baisas per kWh for consumption between 4,001 and 6,000 kWh, and rises to 32 baisas per kWh for usage exceeding 6,000 kWh. For additional accounts, the rates are slightly higher, with 22 baisas per kWh for up to 4,000 kWh, 26 baisas per kWh for consumption between 4,001 and 6,000 kWh, and 32 baisas per kWh for over 6,000 kWh.
The non-residential sector will follow a flat rate of 25 baisas per kWh for the first year, with future rates subject to annual adjustments, pending approval from the Council of Ministers. This approach aims to offer stability and predictability to businesses while allowing flexibility for potential changes in the energy market. The non-residential sector will benefit from transparent and consistent pricing over the next several years, supporting business growth and economic stability.
For the agricultural and fisheries sectors, the new rates are designed to support the essential industries that play a vital role in Oman’s economy. The tariff for consumption up to 3,000 kWh will be 12 baisas per kWh. For usage between 3,001 and 6,000 kWh, the rate is set at 16 baisas per kWh, and for consumption over 6,000 kWh, the rate increases to 24 baisas per kWh. These sectors benefit from reduced rates compared to other categories, reflecting their importance to Oman’s food security and economic sustainability. The updated rules also include specific tariffs for electricity connections, with charges based on the type of counter and load capacity.
