Muscat: In an unprecedented decline in demand, the nationwide electricity consumption in the Sultanate fell by 1.9% to an annual figure of 33,156 GWh. This reversal in trend is a first post the restructuring of the sector in 2005 which, until now – witnessed a growth of 4 – 6% in consumption annually.
The slump was caused primarily due to the pandemic. As per the figures released by the government’s holding company for their power assets and related service providers – The Nama Group, the subsidies provided by the government also, dipped by about RO 10 million compared to 2019 while, the subsidy provided by The Nama Group, to eligible customers, grew slightly from 18.480 per unit in 2019 to 18.550 per unit in 2020.
This is set to change in 2021 as, the subsidy component is set to be reduced and, over a period of five years, removed altogether. Economically vulnerable households shall continue to receive assistance despite the reduction and removal of the subsidy component.
In spite of the loss in demand, The Nama Group recorded a 4.77% growth with profits after tax rising by 12.29% to a total of RO 67.82 million, in 2020.
