New tariffs are expected to save $260m annually, according to Qais Al-Zakwani, exec director of the Authority for Electricity Regulation
Oman, seeking to bolster state finances as low oil prices slash its revenues, will raise electricity prices for large government, commercial and industrial users at the start of next year, an official said on Wednesday.
All government, commercial and industrial consumers of at least 150 megawatts per year will pay the higher tariffs, Qais Al-Zakwani, executive director of the Authority for Electricity Regulation, told reporters, adding that the measure was initially expected to affect 10,000 consumers.
"These consumers represent 1 percent of the current total of electricity consumers in Oman, but they consume 30 percent of the supply of electricity," he said.
That group of consumers accounts for around 20 percent of government subsidies for power generation every year so the new tariffs are expected to save 100 million rials ($260 million) annually, he added.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.