Corporate Governance

As per restructuring program of Salalah Power Project, the Authority for Electricity Regulation has granted Dhofar Power Company license number 2/2014 for a Distribution and Supply business on 1st January 2014. Prior to restructuring, the establishment and operations of the Company were governed by the provisions of the Concession Agreement between the Ministry of Housing Electricity and Water (MHEW), DPC and Dhofar Generating Company (DGC) dated 17 March 2001.


DPC, as Licensed Distribution System Operator shall:

  1. Become and remain a party to the Distribution Code.
  2. Comply with the provisions of the Distribution Code.
  3. Co-operate with other Licensed Distribution System Operators in the maintenance and development of the Distribution Code.

Electricity Holding Company (EHC), which is owned by the Omani government, holds a 98.74% share of the Dhofar Power Company. EHC also holds 99.99% of the shares of the government in other eight subsidiary companies in the Electricity Sector.

The Authority for Electricity Regulation, Oman in exercise of the powers conferred by Article (2) and Royal Decree No. 78/2004 promulgating the Law for the Regulation and Privatisation of the Electricity and Related Water Sector reorganized the existing Salalah concession business to form separate generation, high voltage transmission and distribution and retail supply businesses.

Accordingly AER has granted the Distribution and Supply Licence to Dhofar Power Company.

Effective from 1st January 2014, Distribution and Supply Licence is valid for 25 years unless revoked by the Authority in accordance with Article (121) of the Sector Law.

Licensed Activities

Distribution and Supply Licence (No. 2/2014) of DPC authorises the Company to undertake the following Regulated Activities

  1. To Distribute electricity and to finance, develop, own and/or operate and maintain its Distribution System in order to do so.
  2. To Supply electricity to Premises;
  3. To the extent permitted by the Sector Law and this Licence, to design, own, operate and maintain International Interconnections.
  4. To acquire certain assets and businesses of the Rural Areas Electricity Company SAOC in accordance with Article (88) of the Sector Law.
  5. Carry out any other functions assigned to it by the Sector Law,

In each case, within the Authorized Area.

Compliance with the Grid Code: DPC, as Licensed Distribution System Operator, shall become and remains a party to and shall comply with the provisions of the Grid Code as a signatory to ECA to be signed between OETC and DPC.

The Authority may (following consultation with any relevant Licensed Transmission System Operator and such other License Holders and other third parties (including Exemption Holders) as the Authority shall consider appropriate) issue directions relieving the Licensee of its obligation in respect of such parts of the Grid Code and to such extent as may be specified in those directions.

As per License Conditions DPC has to abide by the vital commitments given under various conditions post license specially in respect of Customer Charter, Performance Standards, Distribution System Security Standards and Customer Complaints Handling Procedure.

As per the license and as mentioned above, the company is not allowed to carry out any business other than the licensed activities without the prior written consent of the AER. Generally, the company does not intend to engage in any non-regulated activities during the coming five years and accordingly no non regulatory activities have considered in the business plan.

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