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COST REFLECTIVE TARIFF

(CRT)
Rates as per (2017)
INTRODUCTION
On Thursday 13 October 2016, it was announced by the AER that the
Council of Ministers had approved the introduction of a new tariff for high
value customers.

The new tariff is designed to more accurately reflects the actual costs of
providing a supply of electricity to large government, commercial and
Industrial customers.

This booklet describes the key features of the new tariff and is designed to
help the customers to better understand the new tariff structure.

CRT MEANING
CRT is an acronym for Cost Reflective Tariff. It is a description of a tariff
structure, that reflects all the cost of electricity generation, transmission,
distribution & supply to the customer. Under this tariff the customer will
be bearing all the cost of his electricity consumption without government
subsidy.

THE OBJECTIVE OF CRT


Applying CRT has two effects on the country:

The first one is it will reduce the amount of subsidy the government pays
for electricity customers, since the high value customers will be paying the
total costs with no government subsidy. This will help the government to
direct the savings from subsidy to other critical project the country needs
to maintain its growth.

The second impact is to reduce the investment in the network to cope up


with the increasing peak load demand. Meaning that when the peak load of
the customers is high, the government will have to invest in their electricity
infrastructure to be able to provide electricity at the peak load, since
the price of electricity at peak load is very high. Applying CRT will drive
customer to reduce their peak load, in order to reduce the value of their
bill. When the peak load of the network is reduced or at least sustained,
the government can reduce the amount of investment in the network, and
direct the savings to other critical national projects.
TARGETED CUSTOMERS
High value customers who consume above 150
MWH in a year, under the Commercial, industrial
and Government Categories are eligible to be CRT
customers.

Bulk Supply Charge: Corresponds to the Orange Box in the diagram.


The tariff design This is the cost of electricity paid to the generation companies to
cover the cost of electricity generation. This value of consumption is
The total cost of energy consumed by the customer is the summation read on hourly basis and is charged at different rates depending on
of the following factors: the time of the day, the time of the week and the month of year. The
following table shows the rate at different times;
Total Cost= Bulk Supply Charge + Transmission Charge + Distribution
System Charge + Supply Charges TOD Register T1 T2 T3 T4
Identification
These different charges correspond to the different stages of electricity Register Off-Peak Weekday- Night-Peak Friday-Peak
delivery to the customer as shown in the diagram below: Peak
02:00 to 13:00
13:00 to 17:00 22:00 to 02:00 13:00 to 17:00
Time Slot 17:00 to 22:00
4 Hrs 4 Hrs 4 Hrs
16 Hrs
Week day Week day Week day Friday

Off - Weekday Night- Weekend


Peak Day-Peak Peak Day-Peak
January - March 12 12 12 12
April 14 14 14 14
May - July 17 67 26 39
August - Septembet 15 26 21 19
October 14 14 14 14
November - December 12 12 12 12
Note: All prices are in Baize per Kwh and the above rates might be changed in
yearly basis. The above table represents 2017 rates.
Transmission Charge: Corresponds to the Green Box in the diagram. This
is the charge for using the transmission network depending the amount of METER SPECIFICATION FOR
load consumed by the customer. The higher the customers load, the more
he is using the transmission network. So, this charge will depend on the
CRT CUSTOMERS
Maximum loads the customers will consume.
CRT customers will be provided with digital meters with automated meter
The value of this charge is 12,600 OMR/MW connected per year for 2017. reading facility. This type of meters is able to read the consumptions on hourly
This charge will change might be changed in yearly basis. basis.

Distribution Charge: Corresponds to the Blue Box in the diagram. This is


the charges for using the distribution network, that delivery the electricity
Load Aggregation scenario
from the substation to the premises of the customer. CRT customer load must be aggregated.
All the load of the customer in a single site (single mulkya and Krouki and
Customers connected on the transmission network will not pay Distribution same entity renting or owning the premises) that are commercial, industrial
Charges, as they do not use the distribution network. or government will be calculated as 1 unit.
If the legal entity Customer has more than 1 rental contract for several
The value of this charge is 7.0 bz/kWh consumed for 2017.
offices in a single site, this is still considered a single customer and his load
This rate might be changed in yearly basis.
needs to be aggregated.
Supply Charge: Corresponds to the Yellow Box in the diagram. This is the In a commercial building if there are residential customers and commercial,
cost of meter reading, billing, collection and other supply services. This the commercial customers load needs to be aggregated, as per the rules
charge is paid per meter in case the customer has more than one meters above.
in the same premise. If the customer is renting several offices in the same site and using these
for different businesses, their load will not be aggregated.
The value of the St is 50 Rials/ customer for 2017,
This charge might change in yearly basis. MR will be automated.
ELIGIBILITY CUSTOMERS
New Customer with connected load or Aggregate Loads between 60kw
and 100 kw
o These customers will be provided with a CRT meter
o These customers will NOT be charged with CRT from the first billing
day of their connection.
o MEDC will monitor these customers on monthly basis.
o When a customer whose load is between 60kw and 100kw reaches
the 150MWH consumption in the last 12 months, the following will
happen;
o He will be subjected to CRT tariff from that day on.
o He will be re billed on CRT retrospectively (for the past 12 months)

New Customers with connected loads or Aggregate Loads Above 100 kw


o Will be given a meter that matches the CRT specifications,
o These customers will be subject to the CRT tariff from first billing.
o If the customer does not reach 150MWH for 12 months, he will be
refunded in October for the whole period, since his connection time.
o He will be removed from CRT tariff in October.
o He will remain under monitoring if he reached 150MHW in a year
(November to October) at any time he will be subject to CRT.

Existing Customers
o Current meter replacement plans are for customer identified
whose 2016 consumption is 150MWH under commercial, industrial
and government categories.

After identifying the CRT customers, the following condition should be applied
to check the applicability of the tariff to the potential customer.

New Customer with connected load or Aggregate Loads less than 60kw
o The customer is given a normal meter and given the normal tariff and
the normal customer segment and category.
o If this customer crosses the 150MWH on 12 months rolling,
His meter will be replaced
He will be subject to CRT from the next months
CRT BILL LAYOUT

Time Zone
Consumption
Calculation- Using
June Tariffs

Monetary value of
electricity Consumption

Transmission Charges

Distribution Changes

Supply Charges

Bill Value
Some typical Questions and answers regarding the
implementation of the CRT project for the high
value customers in Oman

How the customer will know whether he will be charged based on CRT How do I calculate what my new monthly bill will be?
or not?
If the customer is under commercial, industrial and government Customer can go to the MEDC website (www.medcoman.com) and simulate
categories and his consummation reach 150Mwh in a year. The company his future bills.
will communicate with him regarding change the tariff.
Who will bear the cost of the CRT Meter?
What in case the customer has more than one meters or accounts at the
same premise? New customers will bear the cost of the meter, as per the normal procedure.
Existing customers will get their meters replaces, upgraded or configures free
Consumption at all accounts at the same premises (covered by a single of charge.
krookie/mulkiyah) will be aggregated to determine if the supply to the
premises is eligible for the new CRT or not. In this case the supplies for Who has decided to change the tariff to CRT?
non-CRT eligible purposes, such as residential use will be excluded.
The consumptions of all the meters in the same premises will be The electricity tariff is governed by Law and by the decision of the Council
aggregated to determine whether the customer is eligible for CRT or not. of ministers in Oman. The council of ministers is responsible to change the
electricity tariff.
What if the customer has a number of different premises will his meters
consumptions will be aggregated? Is the CRT tariff the same for all customer segments (gov, Commercial and
Indu)?
The eligibility of the CRT depends only on the consumption aggregated
at the same premises and consumption at different premises will not be The customer segments eligible for CRT are government, industrial and
aggregated. commercial. The CRT tariff is the same for customers across these categories.

Are there plans to include residential customers in the CRT in the future? Will CRT customer have a different treatment for settling their bills?

The Authority has no plans to extend the CRT to residential customers. CRT customer are still subject to the same regulation for payment as the
Decisions to change the CRT applicable to residential customer tariffs can normal customers.
only be taken by the Council of Ministers.
CUSTOMER COMMUNICATION
For more details or clarifications about the CRT tariff;

Portal and mobile application will be available to the customers. So, they
will be able to login to their profiles and see their consumption online.
Contact Center (80070008)
Visit MEDC branch