Oman posts modest uptick in 2020 power system losses

Oman posts modest uptick in 2020 power system losses

Hitting an all-time high of 24.6 per cent in 2004, system losses have since been successfully reined-in in response to an effective 'carrot-and-stick' policy wielded by the regulator. However, eliminating system losses altogether are a technical impossibility, say experts, given the inherent nature of electricity to dissipate in certain environmental conditions as it travels along the transmission and distribution networks. Non-technical factors, such as billing errors, faulty meters and accounting mistakes can also contribute to losses. System losses in the Dhofar System, which serves part of Dhofar Governorate, also rose in 2020 to 15.9 per cent, up from 10.6 per cent a year earlier. However, in the license of the Rural Areas Electricity Company (Tanweer), system losses fell sharply to 4.7 per cent in 2020, down from 15.1 per cent in 2019. Tanweer's license covers all of the areas of the Sultanate that are not served by the Main Interconnected System and Dhofar System. Included in its sprawling jurisdiction are the Al Wusta and Musandam, as well as swathes of the country that fall outside the country's main grids. "The significant losses reductions achieved since the sector's restructuring in 2005 reflect the application of a clear incentive based price control