Finance Ministry commits to settling power sector dues

Oman’s Ministry of Finance has stressed that it is committed to meeting the government’s payment obligations to power generation and water desalination companies operating in the Sultanate whose output is covered by purchase agreements signed under the provisions of the Sector Law.

The Ministry assertion, which came in a statement to Oman News Agency (ONA) on Friday, is in apparent response to disclosures filed by a number of listed power and water companies notifying shareholders of a decision by Oman Power and Water Procurement Company (OPWP), the state-run monopoly offtaker of power and water, to temporarily withhold payment of certain investment and fuel charges payable to the producers.

The ministry statement referenced efforts by OPWP to reach an understanding with the companies with regard to the withheld payments, as well as to review the expansion plans of the sector based on demand trends.

Those discussions, it said, were part of efforts to improve the efficiency of bill collection and reducing production costs with a view to mitigating the subsidy burden on the government, without prejudice to the government’s obligations to the parties concerned.

Oman Observer

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