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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Landmark power and water subsidy reforms: What they mean for consumers in Oman

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GENERAL QUERIES


As a citizen, what am I required to do after the implementation of the new tariff?


All you have to do is update your data for all electricity accounts that you own by contacting the electricity service providers in your area. You must also update your data for all water accounts with Diam or through the Water Directorate in the Office of the Minister of State and Governor of Dhofar for customers of this directorate. The system will automatically determine the accounts associated with the civil ID for each customer and ensure the implementation of the Citizen Account Tariff for the highest-consuming two accounts owned by any Omani citizen. Any additional accounts will be subject to the Resident tariff and additional accounts tariff.


What documents are required to update customer data?


For electricity: Civil ID; Electricity accounts details; Property deed of ownership (Mulkiya) or a municipality-approved lease agreement


For water: Civil ID; Water accounts details; Property deed of ownership (Mulkiya) or a municipality-approved lease agreement


How long does it take to update my data in the electricity distribution companies’ databases?


When the customer submits the required documents to the electricity and water companies, the update will appear automatically in the invoice of the following month after the update.


What if the customer is late in updating his data?


The new system has allowed a six months’ period, ending on June 30, 2021, for customers to update their data following the implementation of the new tariff. However, we advise the customers to update their data as soon as possible so that they can benefit from the Citizen Account Tariff.


The Citizen Account Tariff will be applied retroactively to the customer who updated his data between January 1, 2021 and June 30, 2021, but only for two accounts.


If the customer updates data after June 30, 2021; he will not benefit from the retroactive calculation of the Citizen Account Tariff. This Citizen Account Tariff will only reflect on customer bill in the month following the date of data update.


I updated my details, but the bill I received is not modified?


You have the right to obtain a reference number from the service provider stating the date on which your data was updated. When you submit the required documents through the available data update channels, the system will electronically process your data within a period not exceeding one month.


In case you updated your data at the time that the system performs the necessary processing for the issuance of bills, the bill of the next month following the month in which you updated your data may reflect the previous tariff. As soon as the data appears in the system after the update, the tariff will be adjusted and the value of the bills will be corrected as of the date your data is updated.


How can I know the tariff applicable on my account?


You can know the applicable tariff applied to each of your electricity and water accounts by one of the following ways:


• Check your electricity and water bills; the applicable tariff name will be indicated.


• Call the electricity or water supplier call centre and enquire about the tariffs applied to each of your accounts.


• Visit the service supplier website.


Will electricity meters be changed?


Electricity meters will be changed for the category of Large Customers who are subject to the cost-reflective tariff. The new meters will be able to calculate electricity consumption and send it automatically to the service provider for the purpose of calculating the value of the monthly bill.


What should I do when buying or renting a home?


When you buy or rent a home, contact the electricity or water service provider and update the property ownership or the lease contract information.


What are the best practices to save on my bills?


You can take a look at the Energy-Saving Home Guide from the (Yaseer) program at (https: //apsr.om/pdfs/ee/guide-en.pdf). The guide provides valuable tips on choosing high-efficiency electrical appliances, in addition to a number of solutions that help households to save energy and ultimately make more savings on their electricity bills.


FAQs


I am a citizen and I have five electricity meters under one account; am I eligible for the Citizen Account Tariff?


Yes, you are eligible for the Citizen Account Tariff if the meters are registered within the same account.


I am a citizen but living in a rented property; can I benefit from the Citizen Account Tariff for this property?


All Omani citizens will be entitled to benefit from the Citizen Account Tariff for two accounts as a maximum. If you live in a rented property, contact the service provider to update your information. A copy of the lease contract approved by the municipality should be submitted; so that you can benefit from the Citizen Account Tariff.


I am a citizen owning two properties, and I have rented out one of them to a resident, will the tenant get the Citizen Account Tariff?


The Citizen Account Tariff is applicable only to Omani citizens up to a maximum of two accounts; thus, residents are not entitled to the Citizen Account Tariff. The Resident (and additional accounts) Tariff will be applied once the tenant’s data are updated with the service provider.


I am a citizen and a new tenant of a property registered in the name of a resident. What should I do to change the account information?


In order for the service provider to apply the Citizens Account Tariff, you will first be required to submit a lease agreement approved by the municipality, following which the service provider will register the electricity/water account under your name.


I am a citizen and I own a unit in a multi-apartment building (residential apartments). Will I be eligible for subsidies for my residential unit?


If you have electricity and water accounts linked to your civil ID, the Citizen Account Tariff applies automatically to those two accounts. If you have two accounts for electricity and other two accounts for water linked to your civil ID, the Citizen Account Tariff applies automatically to those four accounts. If you have more than two accounts linked to your civil ID, the Citizen Account Tariff applies automatically to the highest consuming two accounts; and the Resident Account Tariff applies to the third account onward.


I am a citizen and I have two properties; none of them is included in the Citizen Account Tariff, what should I do?


All you have to do is update electricity and water accounts with the provider through the available channels.


I am a citizen owning three properties, and I have rented out two of them. Will I be eligible for subsidies for the three?


Eligibility for Citizen Account Tariff, in such a case, depends on tenants; if the properties are leased to a resident with a lease agreement under his or her name, the Resident and Additional Accounts Tariff shall apply. However, if the properties are leased to an Omani citizen under a lease agreement, the Citizen Account Tariff shall apply.


A relative of mine lives in a property registered in my name with the accounts of electricity and water also registered in my name; shall I benefit from the Citizen Account Tariff?


If the account is registered in your name, it will be considered among the accounts benefiting from the Citizen Account Tariff, leaving you with one account to benefit from the Citizen Account Tariff category. However, to fully benefit from the Citizen Account Tariff for two accounts registered in your name, you should register a lease agreement with your relative with the Municipality. After that, update your data through the relevant channels.


We are a group of brothers and sisters living in the same property. Are we eligible for the Citizen Account Tariff?


The electricity and water accounts should be registered under one civil ID to benefit from the Citizen Account Tariff. If the two accounts of electricity and water are registered under two different names, the eligibility criteria shall not apply. In such a case, the members of the household can agree to have both accounts registered under one person’s name (with no legal effect on the ownership of the property itself). The same person shall then update his or her data through any channel available to benefit from the Citizen Account Tariff which shall apply to two accounts registered under the name of that person.


Can I change my account that benefits from the Citizen Account Tariff? How?


Yes, you can change the accounts benefiting from the Citizen Account Tariff via the designated communication channels of the service provider. You will be eligible to benefit from the Citizen Account Tariff for up to two accounts only.


How many times can I change my account that benefits from the Citizen Account Tariff?


Once you choose one of your accounts to be the one that benefits from the Citizen Account Tariff, you can’t change it until 12 months have passed. However, if you are changing your key data (such as the ownership of the property or the lease agreement), you are allowed to choose the two accounts that will benefit from the Citizen Account Tariff.


I am a resident living in a rented apartment, what will be the applicable tariff?


The tariff regulations stipulate that resident owners or tenants are not entitled to benefit from the Citizen Account Tariff for electricity and water accounts, and the Resident and Additional Accounts Tariff shall apply to their accounts.


National Subsidy System (NSS) for electricity and water subscriptions


What is the National Subsidy System for electricity and water?


It is a platform that facilitates providing subsidy to eligible Omani households to mitigate the impact from implementation of the electricity and water subsidy reform programme. Households covered under the National Subsidy System will receive support in the form of deduction in their electricity bill, in the first stage, and in their water bill in the following stages.


How can I benefit from the National Support System?


Register in the National Support System for electricity and water subsidies by downloading the NSS Application on your smart phone or visit the official websitewww.nss.gov.om


For more information and updates about the NSS, kindly follow the NSS on Twitter: @nationalsubsidy


When will the NSS support be rolled out?


You can register in the NSS starting from 20th December, 2020. Eligible Omani citizens that have registered in the NSS will receive the additional subsidies starting from their January 2021 bill, which will be issued in February 2021 by their electricity service provider.


What are the categories targeted by the NSS?


Eligibility is met based on both the size and income criteria of the household, according to the table below:


Will families covered in the Social Security system be eligible for subsidies in the NSS?


The highest social security monthly salary is within the category of (RO 500 or less). Accordingly, if the beneficiary is an independent household, it is eligible for the additional subsidy under the NSS. But, if the beneficiary of the social security system is living within a larger family in the same household, the above-mentioned eligibility criteria shall be considered.


How did you devise the categories eligible for additional subsidies?


It was based on the results of the 2019 Household Income and Expenditure Survey, coupled with the adoption of one of the relative calculation methodologies in determining the applicable thresholds. Accordingly, two eligibility criteria have been established; the total income and the number of household members.


What is the mechanism for providing subsidies to the households covered by the NSS?


The subsidy will be reflected in the form of a discount in the total bill value based on a certain percentage to be determined annually by the National Subsidy System Committee. The subsidy is, however, capped to 4,000 kWh/month consumption for electricity. A similar mechanism will apply in respect of water upon roll-out in the later stages.


How are the household members identified?


Members of a household are the individuals who are associated with of the applicant (head of the family) and live in the same property for which the applicant will receive electricity and water subsidies.


Are domestic workers counted among the members of the household?


Domestic workers are not included in the number of household members when determining eligibility.


How is household income calculated?


A household income is basically the sum of salaries and wages received by members of such household, whether generated from the private sector, the public sector, or the civil sector, in addition to any other income generated from pensions, commercial revenues (renting houses, cars... etc.), investment profits and revenues, and incomes generated from agricultural activities, fishing, or otherwise which are estimated monthly.


Is seasonal income included in calculating the household income? How are seasonal and non-fixed incomes calculated?


Yes, the total household income includes all types of income that the family gains throughout the year. The total of these incomes is calculated and divided by 12 months and added to the monthly income.


Which income is taken into consideration? Is it only the income of the head of the household; or that of all working family members?


The total income of the household, including the head of the family, the spouse, and all income of earners within the same household is calculated to establish eligibility.


Why are earning of all members of the household being calculated and not just the income of the head of the household?


When comparing the economic and living standards of families, and to assess the economic status of one household, it is necessary to consider the total incomes of its members. Such collective income positively impact the standard of living of the household in general, regardless of the extent of the members’ contribution to household spending


Will the rent value paid by the tenant be deducted from the total income of a household?


The total household income is calculated without any deductions


How will the income be calculated if the head of the family has a loan and monthly installments are being deducted from his/her salary? Will the total income be calculated after deducting the loan value or not?


Deducting loan instalments or other liabilities and household income is calculated without total expenses.


Who is in charge of implementing and supervising over the NSS?


NSS is supervised by the National Subsidy System Committee (formerly known as the Fuel Pricing Committee), whose membership includes representatives from: Ministry of Finance, Ministry of Energy and Minerals, Ministry of Commerce, Industry and Investment Promotion, Ministry of Economy, Ministry of Social Development, and OQ Group.


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