RO 8.8 bn investments across regulated sectors

AFRAH AL BALUSHI
MUSCAT, MARCH 31
Investments in sectors regulated by the Authority for Public Services Regulation (APSR) are projected to more than double to about RO 8.8 billion during the Eleventh Five-Year Plan (2026–2030), up RO 3.4 billion during the Tenth Five-Year Plan.
Disclosing these projections at the Authority’s annual media briefing on Tuesday, March 31, 2026, officials also outlined key achievements in the public services sector, alongside the launch of three strategic initiatives: a continuous renewable energy generation project, battery energy storage systems, and a demand response management programme. Improvements to service assurance standards for 2026 were also announced.
On digitalisation, the Authority reported strong progress in smart metering, reaching 99% penetration in the water sector and 80% in electricity, with actual remote reading rates of 97% for electricity and 97.71% for water. Over the past five years, the Authority has issued 17 regulations, granted 14 licenses, approved 14 exemptions, and developed 15 subscriber rights frameworks, in addition to six safety standards and eight network reliability standards.
Dr Mansour Talib al Hinai, Chairman, said service guarantee standards have been strengthened, including doubling compensation for repeated non-compliance by service providers, adding that the Authority operates under a structured framework defining clear roles for policymakers, regulators, and operators to enhance efficiency and governance.
Reviewing sector growth (2021–2025), he noted that water consumption rose by 13%, subscriber numbers by 12%, while electricity subscribers increased by 14% and consumption by 27%, reflecting Oman’s ongoing economic and urban expansion.
In renewable energy, the Authority highlighted a sharp increase in clean power contribution, which is projected to reach 9.46% of total generation by 2025, up from 1.95% in 2021, with output sufficient to supply around 155,000 homes.
Abdulaziz Al Siyabi, Director of Strategic Studies at APSR, said regulatory oversight includes comprehensive audits covering billing, meter reading, and service disconnection procedures, alongside a “mystery shopper” programme. Compliance reached 96% in 2025, above the 95% target.
He added that around RO 153,000 in compensation was paid to more than 9,000 subscribers, while customer satisfaction improved to 75%. Average service connection times stood at 1.17 days for electricity and 6 days for water.
The Authority also reported strong localisation and economic impact indicators, with Omanisation reaching 98.55% across regulated companies. Spending on SMEs rose 80% to RO 119 million, while local value added increased 35% to RO 50 million.
In infrastructure development, Eng Alaa Al Lawati, CEO of Nama Distribution Company, said the electricity transmission network saw a 40% increase in line length and a 13% rise in substations, while distribution networks expanded 13% in length and 8% in substations.
In the gas transmission sector, network capacity rose 3%, pipeline length increased 5.9%, and transported volumes grew 22%. Key projects include the second 42-inch Fahud–Sohar pipeline, gas supply to Marsa LNG, connection of SOGL’s network to the national grid, and enhancements to safety, business continuity, and regulatory frameworks including RAB optimisation and system expansion studies.
In the water sector, Eng Qais al Zakwani, CEO of Nama Water Services, said network length increased 32%, treatment plants rose 9%, and wastewater treatment reached 98%. Water quality testing surged 74%, with compliance with drinking water standards reaching 99.81%.
He added that 97 projects worth around RO 966 million are currently under execution, aimed at expanding capacity and improving service efficiency.
Finally, APSR confirmed that ongoing and future investments are aligned with a strategic shift toward enhancing sustainability, operational efficiency, and resilience across Oman’s regulated utility sectors.