MUSCAT: With growing complaints by citizens over unusually high power bills, the Authority for Public Services Regulation (APSR) officials are addressing a press meet.

Highlights from the press conference:

Mansoor Al Hinai, Chairman of APSR: A comprehensive evaluation by the Public Services Authority of the Electricity Subsidy Redirection Program.

Mansoor Al Hinai, Chairman of APSR: The electricity sector is subject to very strong regulatory frameworks that control any bases and amounts used in the sector.

Mansoor Al Hinai, Chairman of APSR: We have 14 power generating companies. The production efficiency has increased by 45 percent since the restructuring of the sector.

Mansoor Al Hinai, Chairman of APSR: Establishing the Public Services Regulatory Authority is to protect the interests of subscribers and defend their rights.

Mansoor Al Hinai: There is a steady growth in the size of assets, the number of subscribers and the volume of energy that was distributed during the last period, starting from 2006 with the restructuring of the sector.

Mansoor Al Hinai: The total costs of the electricity sector consist of energy production costs of 57 percent, capital costs of 27 percent, and operating costs of 16 percent.

Mansoor Al Hinai: The rate of increase is very large, doubling in subscribers, doubling in units, and total consumption at the peak.

Mansoor Al Hinai: Sultanate has a surplus in electrical energy and that the Gulf Electricity Connection has led to the Sultanate selling the surplus to neighboring countries because they have a shortage of electrical energy.

Mansoor Al Hinai: There are those who wonder about our delay in using alternative energy, the reason is that we are looking for a mechanism to reduce energy generation costs.

Mansoor Al Hinai: We make sure to plan on the demand for energy. Indeed, there were additional capacities in the previous stages, and we are working to solve this problem.

Mansoor Al Hinai: Review of the contract requirements by the authority and we assure everyone that we have not put out any tenders within 5 years.

Mansoor Al Hinai: There is strong control by the authority over power generation, and this is done through diversifying the sources of power generation.

Mansoor Al Hinai: The Public Services Regulatory Authority is conducting a comprehensive evaluation of the program to redirect support to the electricity sector, and this evaluation concluded that some amendments should be made to the current tariff structure.

Mansoor Al Hinai: High electricity bills are caused by the subsidy redirection program

Mansoor Al Hinai: The government decides to reconsider the electricity subsidy directive

Mansoor Al Hinai: will not increase the electricity tariff during the summer period and it is been forbidden to cut the service during the summer period.

Mansoor Al Hinai: There will be installments to pay electricity bills, which is for the benefit of the citizen

Mansoor Al Hinai: There is strong control by the authority over the sector companies

Mansoor Al Hinai: Citizens will not be required to pay the bills in full and can pay the bills in installments.

Mansoor Al Hinai: The authority periodically monitors the performance of licensed companies through performance monitoring mechanisms that are represented in reducing waste, enhancing network security, subscriber service indicators and the efficiency of investment in networks, and companies are subject to strong supervision by the authority.

Mansoor Al Hinai: The authority is studying the tariffs related to economic and agricultural activities in a way that they are not affected by the tariff restructuring.

Mansoor Al Hinai: The authority is working continuously to ensure that groups of low-income people are not affected by any redirection of support.

Mansoor Al Hinai: The citizen has a choice between the prepaid meter or the digital meters, and this is our direction in the next stage and we announced the plan for the transformation of digital meters.

Mansoor Al Hinai: We were directed to provide solutions to pay the bills for the months of May and June.

Mansoor Al Hinai: We are now working on the issue of switching to digital meters, which is a solution to the issue of estimated readings.

Mansoor Al Hinai: Implementing the decision to redirect the support to the deserving is a challenge and we are trying to implement it. The number of beneficiaries was 3000, and they are now 4000 deserving.

Mansoor Al Hinai: The companies were fined 10 million riyals in 2020, and there is a monitoring mechanism for the performance of all companies. The most important thing is that we have the quality of services.

Mansoor Al Hinai: Amendments to the current electricity tariff structure as part of a comprehensive evaluation of the subsidy reorientation program for the sector.

Mansoor Al Hinai: We are adopting 12 baisas as a flat rate for the tariff during the summer period starting from March to August.

Mansoor Al Hinai: People with low incomes will benefit from the new “1,000 units” segments, in addition to the estimated 33 percent reduction.

Mansoor Al Hinai: Any exaggerated cost by companies will exclude their investments in the sector, and there are many examples of this during the past years.

Mansoor Al Hinai: The citizen does not bear the delays in taking the readings, and companies that do not comply will take action and it will be in the interest of the citizen.

Mansoor Al Hinai: The bills for the months of May and June will be recalculated, and in case there is an increase in the bill, the excess amount will be deducted from the bill of the following month.

Mansoor Al Hinai: The current tariff does not reflect the real cost of electricity, because it is subsidized and does not include generation costs and others.

Mansoor Al Hinai: There will be a delay in the issuance of the July invoice due to the implementation of the decision issued on the structure of the new tariff. We assure those who paid their bills before implementing the decision, their statements will be reconsidered.

Mansoor Al Hinai: 5 alternative energy plants will be out of service, and in the future we will see tenders for wind energy generation,

Mansoor Al Hinai: We have prevented the total value of the invoice resulting from the estimated readings for several consecutive months, and the citizen was not charged the previous accumulations so that they do not exceed 20% of the total ordinary invoice, so that it is paid in installments.

Mansoor Al Hinai: We affirm that the focus of the authority’s attention is the citizen, and the authority’s doors are open to receive your suggestions and complaints, and this is part of our work in providing service to the citizen and easing the burdens on him.