Date: 19 December 2013:
The Authority for Electricity Regulation, Oman (the “Authority”) has commenced a price control review for the Main Interconnected System (“MIS”) Distribution and Supply companies (MEDC, Majan and Mazoon), Dhofar Power Company (“DPC”) and the Rural Areas Electricity Company (“RAEC”).
As part of the price control review process, the Authority has published a Key Issues Consultation Paper (the “Consultation Paper”) that discusses a number of issues that will inform how the price control works, including:
- The form and structure of the price control;
- The duration of the price control;
- Approaches to determining capital expenditure;
- Approaches to determining operating expenditure;
- The treatment of digital metering expenditure within the price control framework;
- How financial issues, including cost of capital, could be approached in the price control; and
- How the price control framework could assist Licensees to improve their performance in a number of areas including customer service, losses and security of supply.