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

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

Fingerprint Dive into the research topics of 'Electricity tariffs based on long-run marginal costs for central grid system of Oman'. Together they form a unique fingerprint.

  • Cite this