Vision:
“To provide cost effective electricity to all premises in remote areas in Oman” |
Mission:
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To supply reliable electricity and where deemed appropriate, potable water, to customers at the lowest per unit delivery cost.
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To provide Omani Nationals with challenging and rewarding employment opportunities.
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To operate its generation facilities, production plants and distribution networks in a safe and environmentally responsible manner.
Objectives:
The following are the key objectives that the Company wishes to achieve over the planning horizon, starting in 2009:
Objective 1:
Significantly improve cash flow management throughout the Company
Objective 2:
Become a more ‘customer focused’ organization
Objective 3:
Provide Omani Nationals with a challenging work environment
Objective 4:
Significantly improve operational efficiencies and operate the system in a safe and environmentally responsible manner
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Rural Areas Electricity Company SAOC (“the Company”) is a closed Omani Joint Stock Company registered under the Commercial Companies Law of Oman.
RAECO operates Power plants for generate and supply electricity to the Dhofar, Musandam, Al-Wusta, Masirah parts of Dakliyah, Dahira and Sharqiya regions. The power generated from the plants in these regions is being sold directly to customers and a separate power sale from Raysut A&B (Dhofar region) power plant to PWP based on agreed Power Purchases Agreement by both parties.
Our Desalination Plants are located in Abu Mudhaibi, Sowgrah, Kumzer, Masirah and Al Hallaniyat. The desalinated water is sold to PAEW and the water sales tariff(The Bulk Supply Tariff (BST) is approved by the Regulatory Authority.
On 1 May 2005, in accordance with the law for the regulation and privatization of Electricity and related Water Sector (the Sector Law), the assets and liabilities of Ministry of Housing, Electricity and Water (MHEW) that relate to the functions and duties of the company were transferred to it by a Transfer Scheme.
Our license and business activities:
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Generation Business - Electricity activity
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Generation Business - Desalination activity
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Transmission Business - Yet to be executed
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Distribution Business - Electricity activity
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Supply Business - Electricity activity
Rural Areas Electricity Company SAOC operates under price controls set by AER that set maximum limits on Company’s Revenue entitlements for its electricity and related water production activities and its electricity distribution and supply activities. The costs of RAEC’s related water activities are recovered through cost reflective bulk supply tariff. The costs of Raysut A & B electricity activities not related to RAEC supply is recovered through power purchase agreement between RAECO and OPWP.
Our employment team is above 200 including managerial non managerial position with Omani and Expatriates across the Sultanate Oman.
Our main power generation and water desalination activities and billing collection activities are out sourced through professional institution which are presently prevails in sultanate of Oman in the power industry.
