Cess on consumption-based electricity bill in Muscat

The Muscat Municipality has decided to levy charges on the electricity bill. As per the decision, which has been published in the Official Gazette, if the bill amount is less than RO 25, the charges will be 0.5 per cent of invoice value and one per cent if the bill amount is between RO 25 and RO 50. If the bill exceeds RO 50, the levy will be two per cent of the value. It said the fee for municipal services will be applied from February 1 on housing, except social security housing.


In 2016, The Authority for Electricity Regulation (AER) launched a new tariff system for large government, commercial and industrial customers. The new tariff was for existing large customers who consume more than 150 megawatt-hours (MWh) per year, and with immediate effect for new customers falling in this category.
It will target an estimated 10,000 existing government, commercial and industrial customers that constitute less than one per cent of all registered customers, but consume in excess of 30 per cent of total electricity supply, and are allocated 20 per cent of total subsidy. The new tariff, he said, will be different for every hour of the day, thereby providing a relatively small number of large government, commercial and industrial customers with strong incentives to reduce overall consumption. It also provides them with the information they need to more actively and effectively manage their consumption.