Oman

Member Profile

Authority for Electricity Regulation (AER)

  • Bait Al Reem Building, 3rd Floor 
    Al Khuwair, Sultanate of Oman
  •  +968 24 609 777
  •  *protected email*
  • www.aer-oman.org

Sectors Regulated:

  • Electricity
  • Water (desalination only)

Establishment

  • Established in 2005

Responsibilities

  • Legal basis
  • The Law for the Regulation and Privatisation of the Electricity and Related Water sector (”’the Sector Law”) promulgated by Royal Decree 78/2004 on 1 August 2004.
  • Responsibilities
  • The Authority has a number of general and specific duties, largely reflecting key Government objectives for the electricity and related water sector in Oman. The Authority’s duties are set out in Article (22) of the Sector Law and include:
  • A duty to secure the provision of electricity and related water services in Oman
  • A duty to promote competition in the electricity and related water sector
  • A duty to secure the safe, effective and economic operation of the electricity and related water sector in the public interest
  • A duty to protect the interests of customers, in particular those with limited income, the elderly and sick, and a duty to prepare criteria relating to the welfare of customers and to act in accordance with such criteria
  • A duty to secure compliance with Government policy relating to the protection of the environment, Omanisation and Omani Content
  • A duty to ensure the financial and technical capabilities of licensees and to ensure companies operating efficiently can finance their activities
  • A duty to secure the conduct of fair and transparent competitions for new capacity and output by the Oman Power and Water Procurement Company SAOC
  • A duty to facilitate the privatisation of the electricity and related water sector in Oman and a duty to review on an annual basis the scope for further liberalisation of the electricity and related water sector
  • A duty to prepare and maintain a Public Register of all matters relating to licenses and exemptions
  • Governance  duties:
  • The Authority is also subject to the following governance duties:
  • a duty not to discriminate against or unduly prefer any Person
  • a duty to act consistently treating like cases alike and, in particular, to ensure, so far as it considers appropriate, that all licences and exemptions for the same Regulated Activities are granted in substantially the same form
  • a duty to minimise, insofar as it is able to do so, the regulatory burden on licence holders and exemption holders
  • a duty to give written reasons for its decisions
  • Functions:
  • Article (25) of the Sector Law sets out the principal functions of the Authority which include:
  • Implementing the general policy of the State in relation to the electricity and related water sector in Oman, including obligations arising from international agreements (provided such obligations are not in conflict with the Sector Law)
  • The issue, modification (where appropriate) and revocation of licences and licence exemptions
  • The Authority monitors the implementation of the terms and rules of licences and licence exemptions
  • The Authority examines complaints submitted to customers and licence holders, enforces statutory duties and licence conditions and has powers to order compliance and to levy fines
  • Setting out standard technical criteria to be complied with in relation to connection and use of system standards and the maintenance and development of licencees’ systems
  • Settlement of certain industry disputes between licence or exemption holders, customers or other persons
  • Co-ordination between relevant ministries and government units in all that is required for the development of the electricity and related water sector
  • Authorities
  • The Sector Law provides the Authority with the powers required to perform its functions, including:

    The power to grant, amend and revoke licences and exemptions and set the terms and conditions on which they are issued.

    Enforcement and investigative powers in relation to compliance with the Sector Law, Licences and License Exemptions.

    Powers to issue regulations and decisions authorised by the Sector Law.

  • Complete administrative and financial autonomy. By Law no member of the government can hold position in the Authority. Complete separation from state treasury.
  • Reports to the Council of Ministers. All decision subject to appeal before the Preliminary Commercial Court.

Organisational Structure

  • Internal Structure
  • The Authority for Electricity Regulation, Oman (“the Authority”) is the Authority established by Article (19) of the law for the regulation and privatization of the electricity and related water sector (”the Sector Law”). The Sector Law was promulgated by Royal Decree 78/2004 on 1 August 2004.
  • The Authority is competent to regulate the electricity and related water sector pursuant to Article (2) of the Sector Law.
  • The Government has determined that, pursuant to Article (40) of the sector law, the Authority shall have 5 Members. Accordingly, the Council of Ministers approved on the 01 May 2014 the appointment of the 5 members of the Authority included the Executive Director of the Authority.
  • Members are collectively responsible for managing the Authority’s affairs and for ensuring that the Authority fulfils all of its statutory obligations.
  • The Authority has 4 principal sections: The Customer Affairs, The Economics and Financial Affairs, The Technical Directorate, The Licensing and Legal Affairs.
  • Working Employees
  • Number of Commissioners: 5
  • Number of Staff: 45
  • Budget
  • The Authority recovers all of its costs through licence fees and apportions costs to each regulated activity on the basis of the time it expects to spend regulating each regulated activity.

Population: 3 355 262 (2016 est.)

GDP / Capita: $ 44 600 (2015 est.)

Territory: 309 599 km2 (71. in World rank)

Information will be uploaded soon.

Chairperson

Saleh AL-RASHDI - Chairman

Licensing and Competition Committee Member

Abdulwahab AL HINAI - Director of Legal Affairs and Licenses

Tariff and Pricing Committee Member

Hassan TAQI - Director of Economic and Financial Affairs

Customers and Retail Markets Working Group Member

-no designated member at this time -

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