As part of the initiatives to shore up government revenues, the Sultanate is all set to overhaul the subsidy on public service system in a phased manner during the next five-year period from January 2021 till 2025.
Accordingly, the government has approved the removal of subsidies for electricity and water, which will eventually see prices gradually rising for all including citizens, expatriates, and large companies in the industrial sector.
“In line with the program for reforming electricity and water subsidies, new tariffs will be implemented for electricity and water services effective 1 January 2021”, said a statement from the ministry of finance.
Notwithstanding the financial ability, both citizens and residents are currently provided with subsidies on electricity and water. The subsidy includes non-residential categories such as industrial, governmental, agricultural, and others.
According to the statement, the Residential segment has been divided into two main categories – Citizen Account Tariff and Resident and Additional Accounts Tariff.
The Citizen Account Tariff will be applied to accounts registered in the names of citizens not exceeding two accounts per citizen.
“Resident and additional accounts tariff will be applied to accounts registered in the names of residents and additional accounts for citizens beyond the allowable two accounts under the Citizen Account Tariff”, the statement said.
Residential electricity tariff in 2021
| Residential Category in 2021 | ||
| Category | Threshold (kWh/month) | Tariff (bz/kWh) |
| Citizen Account Tariff | 0 – 2000 | 15 Bz |
| 2001 – 4000 | 20 Bz | |
| More than 4000 | 30 Bz | |
| Resident and Additional Accounts Tariff | 0 – 500 | 20 Bz |
| 501 – 1500 | 25 Bz | |
| More than 1500 | 30 Bz | |
Water tariff in 2021
Like electricity, the residential tariff for water is divided into Citizen Account Tariff, and Resident and Additional Accounts Tariff. Whereas the Citizen Account Tariff will be applied to accounts registered in the names of citizens not exceeding two accounts per citizen, Resident and Additional Accounts Tariff will be applied to accounts registered in the names of residents and additional accounts for citizens beyond the allowable basic two accounts under the ‘Citizen Account Tariff’.
| Category | Tariff Unit | Tariff in 2021 |
| Tariff for Non-residential Categories | (Bz/Gallon) | 4.5 Bz |
| Citizen Account Tariff | (Bz/Gallon) | 2.5 Bz |
| Resident and Additional Accounts Tariff | (Bz/Gallon) | 3 Bz |
Source: https://www.omanobserver.om/citizens-expats-to-pay-more-for-electricity-and-water/
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