Oman has completed the merger of the electricity distribution and supply companies of the Nama Group into two companies that have already commenced operations.
Nama Group is the sole provider of electricity, water and wastewater services procurement, transmission, distribution and supply in the Gulf Sultanate.
‘Nama Electricity Distribution’ and ‘Nama Supply’ have replaced the following four companies: Muscat Electricity Distribution Company (MEDC), Majan Electricity Company (MJEC), Mazoon Electricity Company (MZEC) and Tanweer (Rural Areas Electricity Company).
The new structure applies to the management and supply of electricity services in all governorates of Oman, except for Dhofar, where electricity, water and waste services are provided through Nama Dhofar Services Company.
Ahmed Amer Al Mahrezi, Acting CEO of Nama Group, affirming that the assets and employees of the abovementioned companies were distributed to the two new companies, said that the merger will help revise the costs of the electricity sector in the medium term, raise the efficiency of the electricity system, upgrade the standard of services and develop them to keep pace with technical developments in the field of subscriber services.
The shareholder of Nama Holding, which is the holding company of Nama Group subsidiaries, undertook to restructure the distribution and supply companies in December 2021 based on directives from the Ministry of Energy and Minerals and the Authority for Public Services Regulation (APSR) to enhance the efficiency of the electricity sector, reduce operational and administrative costs, and optimize subsidies.
The electricity subsidy for 2022, according to Nama’s latest annual report, stood at RO 525 million.
On 3 June 2023, it was announced that the restructuring exercise had been completed.
The Nama Electricity Distribution, which consolidates all distribution activities, will specialize in low-voltage networks, including the construction of lines and transformers and meter-related operations. On the other hand, ‘Nama Supply’ will focus on billing and collection activities.
The merger also unifies all services, including call centres, under ‘Nama Services’ to provide an integrated service window for all customers.
Completing the restructuring is expected to prepare the stage for the privatization of the two companies in the near future.
