Electricity tariffs based on long-run marginal costs for central grid system of Oman

Arif Malik, Salem Al-Zubeidi

Research output: Contribution to journalArticle

24 Citations (Scopus)

Abstract

The electricity tariffs in Oman are subsidized and are based on a cost accounting approach and do not reflect the true cost incurred in generating, transmitting and distributing a kilowatt-hour of electricity at the consumer end. This paper presents the electricity tariff based on the estimation of long-run marginal cost at generation, 33 kV, and 415 voltage level for Ministry of Housing, Electricity & Water (MHEW) interconnected power system of Oman. The result shows that at the generation level a marginal kW costs US$ 75 per year and a marginal kWh costs 2.07 ¢/kWh. These costs increase as we move downstream from generation to consumer end. The average cost of electricity at the consumer end connected at 415 V is 6.52 ¢/kWh or 25.17 Bz/kWh.

Original languageEnglish
Pages (from-to)1703-1714
Number of pages12
JournalEnergy
Volume31
Issue number12
DOIs
Publication statusPublished - Jan 1 2006

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Electricity
Costs
Cost accounting
Electric power system interconnection
Electric potential
Water

Keywords

  • Electricity tariffs
  • Long-run marginal cost
  • Power planning

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Building and Construction
  • Pollution
  • Mechanical Engineering
  • Industrial and Manufacturing Engineering
  • Electrical and Electronic Engineering

Cite this

Electricity tariffs based on long-run marginal costs for central grid system of Oman. / Malik, Arif; Al-Zubeidi, Salem.

In: Energy, Vol. 31, No. 12, 01.01.2006, p. 1703-1714.

Research output: Contribution to journalArticle

Malik, Arif ; Al-Zubeidi, Salem. / Electricity tariffs based on long-run marginal costs for central grid system of Oman. In: Energy. 2006 ; Vol. 31, No. 12. pp. 1703-1714.
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