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

Arif S. Malik*, Salem Al-Zubeidi

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

22 Citations (SciVal)


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
Issue number12
Publication statusPublished - Sept 2006


  • 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


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