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The Company Profile

Oman Electricity Transmission Company, was formed in May 2005 vide a license, given by the
Authority for Electricity Regulation- Oman whereby, the company is authorized to carry out the
following activities:

To transmit electricity and to finance, develop, Own and/or operate and maintain its
Transmission System;

To develop and operate a system of central Dispatch of relevant Production facilities which are
connected to its Transmission System or to a System which is connected to its transmission
System

To the extent permitted by the Sector Law and this License, to design, own, operate and
maintain International Interconnections;

To acquire certain asset of the Rural Areas Electricity Company SAOC in accordance with Article
(88) of the Sector Law and this License; and

To carry out any other function assigned to it by the Sector Law

Oman Electricity Transmission Company SAOG (OETC) has a vital role in the Oman Electricity Sector,
as it owns and operates the main transmission network as well as transmission network in Dhofar
through which electricity is transmitted from the generating stations to the distribution load
centers in all governorates of the Sultanate. The main electricity transmission network operates at
high voltage of 132kV and above. OETC also has the responsibility of balancing generation and
demand at all times of the day as part of its responsibilities for the economic dispatch of power in
the Sultanate.
Mission
To transmit and dispatch electricity safely, reliably, securely and economically.

Vision
Renowned world class Transmission Grid by 2025.

Values
Respect

Integrity

Professionalism

Teamwork
2016 Achievements
1. Power units transmitted were 31,909,971 MWh (MIS+DHofar) compared to 30,615,829 MWh in
2015 i.e. a growth of 4.23%
2. Peak Load in MIS was 6,105 MW compared to 5,744 MW in 2015 i.e. a growth of 6.28%
3. Summer transmission system availability was 99.35 % compared to 99.45% in 2015, showing a
slight decreasing of 0.1%
4. Upgrading Jahloot Grid Station to 400/220 kV
5. Upgrading Sur Grid Station to 400/2200 kV
6. Commissioning of new Izki 400/220 KV Grid Station
7. Upgrading Misfah Grid Station to 400/220 KV
8. Commissioning of New Jahloot - Hamriya 220 kV Overhead Line(OHL)
9. Commissioning of New Madinat Barka 132/33 kV Grid Station
10. Commissioning of New Ibra 132/33 KV Grid Station
11. Commissioning of New Awqad Ashor OHL 132 KV ( parts1 & 2)
12. Commissioning of New JBB Hassan 132/33 KV Grid Station
13. Commissioning of New Izki 220/132 KV Grid Station
14. Commissioning of New Qalat Al Awamir 132/33 kV Grid Station
15. Commissioning of New Daghmar 132/11 kV Grid Station
16. Replacement of 132 KV AIS with GIS at Mahadha Grid Station
Board of Directors

Mr. Abdulaziz Mohammed Al Balushi Mr. Ali Abdullah Al Abri Mr. Hussain Abdullatif Al
Balushi
(Chairman) (Deputy Chairman till 31 July 2016) Member from 1 August
2016

Sheikh Humaid Abdullah Al Qatabi Mr. Ahmed Jaffer Al Musalmi Eng. Mohammed Nasser Al Aghbari
(Member) (Member) (Member)
Chairmans Message

It is my great pleasure to extend heartfelt greetings to the readers of Oman Electricity Transmission
Company (OETC) Annual Report 2016. The report highlight the most important achievements and
activities during 2016. It has been a year with many rewarding moments, as well as some
challenges. OETC made solid progress on many fronts, including achieving ISO 55001 certification
related to asset management and ISO 14001 and OSHS 18001 related to environment and safety at
work respectively. This shows OETC commitment to be "Renowned world class Transmission Grid
by 2025" while fulfilling its mission To transmit and dispatch electricity safely, reliably, securely
and economically.

The Report provides an overview on the most important achievement and activities carried during
the year. It provides an overview of our corporate governance. It covers our Operation performance
from different prospective such as HSE performance and HR achievement. In terms of network
performance, the report highlight the most important performance indicators results. Whereas,
the financial performance of the company is provided at the end of the report.

I hope you will take a few moments to peruse our 2016 achievements, as presented in this report.
As you will read within our stories, we have had another strong year. But in same time, we have
challenges that we need to work on during the coming years. Yes weve had success, but we also
know that we have work yet to do, as we continue to build our success.

I would like to take this opportunity to express our utmost appreciation to our valued principals,
consultants, contractors and customers for their continuous support and confidence in the
company during the past years. It is my great pleasure to take the opportunity to express my sincere
appreciation for staff and management whose hard work and dedication make our company great.
Their commitment to excellent service and dedication sets an inspiring and positive example.

Abdulaziz Mohammed Al Balushi


Chairman of the Board
Corporate governance Report

Electricity Holding Company as the direct holder of substantially all of the companys issued and
outstanding share capital has the power to appoint the members of the Board. As a requirement
of the Oman Commercial Companies Law (CCL) members of the board of directors of closed joint
stock companies are elected to office for a period of three years, it being permissible for such board
members to be re-elected or replaced periodically.

The Board is responsible for the overall direction, supervision and control of the business of the
company. The Board has delegated responsibility for overall executive management to the
companys senior management team under the leadership of the CEO. The principal role of the
Board is to oversee implementation of the companys strategic initiatives and its functioning within
the agreed framework in accordance with relevant statutory and regulatory structures. The CEO,
and other members of management are responsible for the conduct of the companys business
affairs and day-to-day management. The CEO reports to the Board on a regular basis.

The Board consists of five members, one of whom is the direct appointee of the Ministry of Finance
and one of whom is the direct appointee of Electricity Holding Company. The majority of the
directors of the company are required to attend for there to be a quorate Board meeting. A Director
may appoint another Director to represent and vote for him in his absence. With limited exceptions,
the majority votes of a quorum of Directors present (in person or by proxy) at a Board meeting
constitutes a decision of the Board. Each Director serves for a three year term. Upon expiry of the
term, each Director must present himself to the Annual General Meeting of the shareholders for
re-election. The election or re-election of Board members occurs at the companys annual general
meeting, pursuant to Omani regulations.

There are no conflicts of interest between the private interests of the Directors and their duties to
the company.

Board of Directors Meetings

Board of Directors meetings are generally held on a quarterly basis and cover approvals of
Quarterly Financial Statements and discussion and approvals relating to quarterly reports from the
Board committees, Internal Tender committee of the management, Health, Safety and
Environment, System Performance, Human Resources and a range of other subjects including
ratification of previous meeting minutes reports and actions completed and pending from previous
meetings. A total of six Board of Directors meetings were held in year 2016.

Name Type of Membership Number of meetings


attended
Abdulaziz Mohammed Al Balushi Chairman 6
Ali Abdullah Al Abri Deputy Chairman 2
(EHC Representative) till 31 July 2016
Humaid Abdullah Al Qatabi Member 5
(MOF Representative)
Ahmed Jaffer Al Musalmi Member 3
Mohammed Nasser Al Aghbari Member 6
Deputy Chairman from 1 August 2016
Hussain Abdullatif Al Balushi Member 3
(EHC Representative) from 1 August 2016

TOTAL SITTING FEES: R.O. 13,400/-

Board Committees

Besides the Main Board there are two board Committees or subcommittees - the Board Executive
Strategic Committee and the Internal Audit Committee.

Board Executive Strategic Committee (BESC)

The Board Executive Strategic Committee serves as a link between the management of the
company and the Board to facilitate the operations of the company and has approval and reviewing
authority for all matters. The BESC raises recommendations to the Board for approval or ratification
or both. The BESC is comprised of four members from the Board, namely, the Chairman of the
Board, the Deputy Chairman of the Board, Mr. Ahmed Al Musalmi and Mr. Hussain Al Balushi. The
Chairman of the Board is also the Chairman of the BESC and the Deputy Chairman of the Board is
also the Deputy Chairman of the BESC. The BESC held four meetings during 2016.

Amongst functions covering acting as an umbrella or governing body generally overlooking Capital
Investment, Human Resources and the Internal Tender Committee of the company, for the ITC, the
BESC reviews and awards all projects greater than the limit of OMR 10 Million.

Name Type of Membership Number of meetings


attended
Abdulaziz Mohammed Al Balushi Chairman 1
Ali Abdullah Al Abri Deputy Chairman 2
(till 31 July 2016)
Ahmed Jaffer Al Musalmi Member 2
Mohammed Nasser Al Aghbari Member 4
Hussain Abdullatif Al Balushi Member -
(from 1 August 2016)

TOTAL SITTING FEES: R.O. 3,100/-

Board Audit Committee (BAC) or Internal Audit Committee

The Board appoints and replaces members of the Board Audit Committee which consists of three
members who the Board selects. The current members of the BAC are Mr. Ahmed Al Musalmi
(Chairman of the committee), Sheikh Humaid Al Qatabi and Eng. Mohammed Al Aghbari. The BAC
is responsible for monitoring the financial affairs of the company and its internal corporate
governance and risk management. Formal risk management reports are presented to the BAC
twice-yearly by the CEO. The Board Audit Committee reports to the Board of Directors and met
four times in 2016.

Name Type of Membership Number of meetings attended


Ahmed Jaffer Al Musalmi Chairman 4
Humaid Abdullah Al Qatabi Deputy Chairman 4
Mohammed Nasser Al Aghbari Member 4

TOTAL SITTING FEES: R.O. 4,000/-


Corporate Governance Principles and Policies

EHC, as the companys controlling shareholder, is influential in OETCs corporate governance


principles and policies. As with the other subsidiaries, OETC adopts EHC's corporate governance
principles and policies as its own. EHCs corporate governance principles seek to create long-term
business value for EHC. This is a combination of processes, customs, policies, laws and institutions
which ensure positive workplace management, marketplace responsibility, environmental
stewardship, community engagement and sustained financial performance. This is an important
component in creating and sustaining shareholder value while ensuring corporate behavior is
ethical, legal and transparent. EHC and its subsidiaries follow the idea that corporate governance
is primarily concerned with sustaining shareholder value, without ignoring the interests of
stakeholders in the company such as employees, customers, suppliers and the community at large.
Good governance practices instil in companies the essential vision, processes and structures to
make decisions that ensure long term sustainability. Therefore the way boards of directors oversee
the running of a company by its management, highlighting various areas of responsibility and
accountability have implications for company behavior not only to shareholders but also to
employees, customers, those financing the company and other stakeholders including the
communities in which the business operates. The corporate governance principles for the group
would be revised every few years by the EHC and provide a basis for promoting the highest
standards of corporate governance with the objective of making the roles and responsibilities of
the Board, its committees and the management transparent and institutionally sound.

Compensation of Directors

The remuneration of the Directors is set by a proposal made by the Board to the Annual General
Meeting of the shareholders of the company, which has the power to either approve or reject the
Boards proposal.

Given below are the breakup of the bonus provision to the Board as well as the compensation or
sitting fees for the year ended December 31, 2016.

Name From To AGM No. of Total no. Total Yearly 2016


AGM Date days of BOD meetings Bonus Bonus
Date (tentative conside meetings attended amount based on
date) red for held from from AGM and
bonus Jan 1, AGM no. of
2016 date meetings
held.
1. Abdulaziz Mohammed Al Balushi 30 Mar 30 Mar 17 365 6 6 10,000 10,000
(Chairman) 16
2. Ali Abdullah Al Abri 30 Mar 20 July 16 113 6 2 5,000 1,548
Deputy Chairman (EHC Rep) 16
3. Humaid Abdullah Al Qatabi 30 Mar 30 Mar 17 365 6 5 5,000 5,000
Board Member (MOF Rep) 16
4. Ahmed Jaffer Al Musalmi 30 Mar 30 Mar 17 365 6 3 5,000 5,000
Board Member 16
5. Mohammed Nasser Al Aghbari 30 Mar 30 Mar 17 365 6 6 5,000 5,000
Board Member 16
6. Hussain Abdullatif Al Balushi 21 July 30 Mar 17 252 6 3 5,000 3,452
Board Member (EHC Rep) 16
TOTAL 30,000

Remuneration to EHC representative (Mr. Ali Al-Abri/ Mr. Hussain Al Balushi) will be paid by
Electricity Holding Company (EHC) according to the instructions received from them. OETC is
accounting and accruing these charges as a remuneration paid to EHC representative. OETC will
pay EHC representative bonus directly to EHC upon receipt of their Debit Note / Invoice as the
payment is not made directly to EHC representative.

BOARD SITTING FEES 2016 (TOTAL)

Sl. No. Name Maximum Total for Board Board Executive Board
Fees 2016 of Strategic Audit
Directors Committee Committee
Abdulaziz Mohammed Al Balushi
1. Chairman 6,000 4,300 3,900 400 -
Ali Abdullah Ali Al Abri
2. Deputy Chairman/Member till 1,800 1,800 1,000 800 -
31 July 2016 (EHC Rep)
Humaid Abdullah Ali Al Qatabi
3. Board Member (MOF Rep) 6,000 3,700 2,500 - 1,200
Ahmed Jaffer Al Musalmi
4. Board Member 6,000 3,800 1,500 700 1,600
Mohammed Nasser Al Aghbari
5. Board Member 6,000 5,400 3,000 1,200 1,200
6. Hussain Abdullatif Al Balushi 4,200 1,500 1,500 - -
Board of Directors Fees TOTAL 30,000 20,500 13,400 3,100 4,000
Operation Performance
Network Perfformance

SYSTEM AVAILABILITY
One of the key measurements of performance is system availability, i.e., availability of the
collection of transmission lines and transformers for the delivery of electrical energy from
generators to customers. System availability is calculated as the actual circuit hours available as a
percentage of the total possible circuit hours in the system. Circuit outages that result from both
planned and unplanned unavailability are taken into account.

System availability is monitor by:

A. Reporting the monthly variations

B. Summer time availability

C. Average system annual availability categorized as planned and unplanned system availability

A. Monthly System Availability 2016


2016 % Unavailability- OETC
Month System
User Connection Maintenance Forced TOTAL
AVAILABILITY%
Connection + Equipment outages
OETC
Modification
Jan-16 0.00% 0.77% 2.96% 0.03% 3.76% 96.24%
Feb-16 0.00% 1.18% 2.38% 0.01% 3.57% 96.43%
Mar-16 0.00% 1.42% 1.45% 0.07% 2.94% 97.06%
Apr-16 0.00% 0.70% 1.03% 0.22% 1.95% 98.05%
May-16 0.00% 0.46% 0.05% 0.05% 0.57% 99.43%
Jun-16 0.00% 0.26% 0.01% 0.05% 0.32% 99.68%
Jul-16 0.00% 0.25% 0.25% 0.02% 0.52% 99.48%
Aug-16 0.00% 0.01% 0.30% 0.02% 0.32% 99.68%
Sep-16 0.00% 0.13% 0.04% 0.05% 0.22% 99.78%
Oct-16 0.00% 0.91% 0.45% 0.02% 1.38% 98.62%
Nov-16 0.00% 0.46% 1.67% 0.61% 2.73% 97.27%
Dec-16 0.00% 0.93% 1.47% 0.02% 2.42% 97.58%
B. Summer Availability

Summar & Annual Availability (2005-2016)


Summer Availability Annual Availbility

100.00%

99.00%

98.00%

97.00%

96.00%

95.00%

94.00%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

C. Annual System Availability

OETC Annual System Availability 98.28%

Comparison of Availability figures


Year Summer Availability Annual Availability
2005 97.55% 97.70%
2006 98.49% 98.23%
2007 95.96% 95.99%
2008 98.75% 98.49%
2009 99.23% 97.76%
2010 99.42% 98.46%
2011 99.56% 99.33%
2012 99.82% 99.65%
2013 99.09% 99.23%
2014 99.35% 98.47%
2015 99.45% 98.77%
2016 99.35% 98.28%

SECURITY AND RELIABILITY

System Security
Transmission System Security is indicated by various parameters such as number of incidents,
energy not delivered and duration of interruptions. Three parameters are used as indicators of
Transmission System Security.

A. Incidents

B. Energy Not Delivered

C. Average Interruption Time

A. Incidents

As per Condition 26.8.c of the Transmission and Dispatch Licence, an Incident is defined as: a
loss of supply to one or more Customers because of faults on the Transmission System. During
2016 there were total of 22 Significant Incidents (SI), including MIS and Dhofar Transmission
System. Out of these, 12 SI were due to problems within OETC system.

Historical Incidents Summary


Caused S.I from OETC equipment S.I. from other parties Energy Not Delivered AIT
by / & system equipment & system (MWh) (minutes
Year / year)
Causing loss Without Causing loss Without OETC Others Minutes
of supply to supply of supply to supply incidents incidents
customers interruption customers interruption
2005 47 4 2244 * 112
2006 25 11 1 2 1995 * 98
2007 29 0 0 0 2028 * 93
2008 23 6 11 4 2085 * 81
2009 44 7 12 28 2961 * 102
2010 17 6 9 2 619 2629.6 19.88
2011 24 4 12 5 3777.8 274.52 109.27
2012 28 5 6 3 951.8 520.9 23.64
2013 18 3 11 0 1418 610 34
2014 11 5 9 2 550.7 1734.4 10.7
2015 20 2 13 5 1857.6 930.29 31.9
2016 7 5 4 6 365.8 103.6 6

B. Unsupplied Energy

Total Total
Unsupplied Unsupplied
Energy due to Energy due to
OETC system OETC system
faults in MIS faults in Dhofar

365.8 MWh 0 MWh

4000
3500
3000
2500
2000
1500
1000
500
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Energy Not Delivered (MWh) OETC incidents Energy Not Delivered (MWh) Others incidents

C. Average Interruption Time

The average Interruption Time (AIT) is the total energy not supplied normalised to the annual
demand, specified in minutes per year.

Average Interruption
Time for the year

6 Minutes
System Reliability
Power reliability is the degree to which the performance of the elements in a system results in
electricity being delivered to customers within accepted standards and in the amount desired. This
is calculated by the energy not delivered as a percentage of total energy delivered in the year.

Reliability of Supply
for the
OETC System
99.998%

Major Incidents
In the year 2016, there were a total of 22 Significant Incidents (SI) declared as per Grid Code.
These Significant Incidents are summarized in the following chart and table.
No.of Incident
6

System Incidents categorized by cause in percentage

CODE CAUSE No. %


Incident
1 Component Failure Transformers 0 0%
2 Component Failure Switchgear 0 0%
3 Component Failure OHL 1 5%
4 Component Failure UGC 0 0%
5 Component Failure protection 1 5%
6 Asset Overload 0 0%
7 Voltage Collapse 0 0%
8 OETC Protection Malfunction 2 9%
9 SCADA and Communication Problem 2 9%
10 Testing & Commissioning Error 0 0%
11 Substation Auxiliary Problem 0 0%
12 External Physical Damage 0 0%
13 Force Majeure 0 0%
14 Transient 0 0%
15 Other Parties Protection Problem 2 9%
16 Other Parties Equipment Failure 1 5%
17 Load Shedding- Transmission Outages 0 0%
18 Load Shedding- Generation Shortage 0 0%
19 Power Stations related incidents 2 9%
20 Human Error ( OETC Equipment) 3 14%
21 Human Error ( Other Parties Equipment) 1 5%
22 Rain & Lightning 3 14%
23 Humidity 0 0%
24 Wind 0 0%
25 Animals 0 0%
26 Other reasons not included in the list 4 16%
22 100%

Out of 22 Significant Incidents, 12 were due to problems in OETC transmission components while
the remaining 10 were due to problems in distribution or generation equipment. The total Energy
Not Delivered due to transmission system originated incidents was 365.8 MWh. The total Energy
Not Delivered due to other incidents was 103.6 MWh.

Quality of Supply
Quality of supply is measured with reference to system voltage and frequency.

Voltage Excursions
There were no voltage excursions during the year.

Number of Voltage Excursions by Year


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
4 1 1 5 5 2 0 1 1 0 0 0

Frequency excursions
There were no frequency excursions during the year.

Number of Frequency Excursions by Year


2005 2006 2007 2008 2009 2010 2011 2013 2014 2015 2016
2 2 0 4 4 4 0 0 0 0 0

Max & Min Frequency in 2016

The maximum / minimum frequency envelope in the year for MIS


50.15
50.10
Frequency

50.05
50.00
49.95
49.90
49.85

MAX MIN
System Load
Maximum demand usually occurs in the OETC transmission system on a weekday in the months of
May to July, during a period of high temperature. The high proportion of air conditioning equipment
in domestic and commercial premises in Oman is the reason that peak demand usually occurs
during the afternoon period when temperatures are highest and the living patterns causes high
utilization of air conditioning at that time.

PEAK LOAD IN MIS SYSTEM PEAK LOAD IN DHOFAR SYSTEM

6105 MW 523 MW

ON 12th JUN 2016 ON 26th MAY 2016

MINIMUM LOAD IN DHOFAR


MINIMUM LOAD IN MIS SYSTEM
SYSTEM
1693 MW
181 MW

Peak & minimum load (MIS)


Year Peak Load (MW) Date of Minimum Load Date of
Peak load (MW) Minimum load
2005 2495 25th Jun 2005 446 1st Jan 2005
2006 2614 16th Jul 2006 468 7th Jan 2006
2007 2773 15th Jul 2007 489 2nd Jan 2007
2008 3139 31st May 2008 586 18th Jan 2008
2009 3546 31st May 2009 623 17th Jan 2009
2010 3613 1st Jun 2010 766 16th Jan 2010
2011 4000 18th Jun 2011 909 8th Jan 2011
2012 4448 25th Jul 2012 1274 29th Jan 2012
2013 4634 16th Jun 2013 1286 19th Jan 2013
2014 5269 11th Jun 2014 1376 14th Jan 2014
2015 5744 05th Jul 2015 1518 20th Jan 2015
2016 6105 12th Jun 2016 1693 10th Mar 2016
Peak & Minimum Load (MIS)

Peak & Minimum Load (Dhofar)


Year Peak Load Date of Minimum Load Date of
(MW) Peak load (MW) Minimum load

2005 199.3 55.9

2006 232.3 67.7


2007 253 69.7
2008 260.4 77.9
2009 297.4 85.8
2010 336 112.2
2011 348 115.1
2012 389.3 127.6
2013 420.5 135.5
th
2014 439 16 Jun 2014 153.1 17th Jan 2014
2015 495.4 27th May 2015 154 23th Jan 2015
2016 523 26th May 2016 181 6th Feb 2016

System development
The company has continued its effort to complete the planned projects on time in order to
strengthen and secure the network to meet the increasing demand of electricity in the Sultanate.
It was able to complete all the projects planned to be completed during 2016 on time. In this
context, the percentage of value of work done was 106%. One of the remarkable achievement is
the introduction of 400 KV transmission system for the first time in the Sultanate. In this regards,
for stations were commissioned. Namely, Sur grid station, Izki grid station, Misfah grid station and
Jahloot grid station. This has contributed considerably in the stability and security of the network.

COMPLETED PROJECTS IN 2016

1. Jahloot 400/220kV Grid Station: In order to evacuate the generated power at Sur power plant
and transmit it to Muscat area, Jahoot grid station was upgraded to 400kV system. This
project includes constructing 400kV GIS, 4x500MVA 400/220kV transformers and two
additional transformer bays.

2. Sur IPP 400/220kV Grid Station: In order to evacuate the generated power at Sur power plant
and transmit it to Muscat area, Sur Power Plant grid station was upgraded to 400kV system.
This project includes constructing 400kV GIS, 5x750MVA 400/220kV transformers and
additional 220kV transformer bay.

3. New Izki 400/220 kV Grid Station: this project consists of 12 bay of 400kV GIS, 7x220kV GIS
and 2x500MVA transformers. The purpose of the project is to support the power evacuation
from Sur power plant as well as to maintain the Transmission Security Standard requirements.
Also this project was required to complete the 400kV backbone by connecting all the regions
and supporting power supply to Dakhaliah region. The project has been energized and in
service in 4 July 2016.

4. Misfah 400 kV Grid Station: This project consists of 11 bays of 400kV GIS, 3 bays of 220kV and
3x500MVA transformers 400/220kV at Misfah. The purpose of the project is to support the
power evacuation from Sur power plant as well as to maintain the Transmission Security
Standard requirements during outage of the SurJahloot 400kV line. Also this project was
required to complete the 400kV backbone by connecting all the regions.

5. Jahloot - Hamriya 220 Overhead line (OHL): Al Hamriyah 220/132 KV grid station was
connected to Jahloot Grid station by 220 kV overhead lines. Its length is 33.8 Km. The OHL
supported the power evacuation from Sur power plant as well as the voltage profile in the
area. The OHL is in the middle of the Muscat area loads (Wadi Adai, Wadi Kabir, Muttrah, Al
Falaj and Qurum grid stations). It is located around 5km away from Wadi Adai Grid station
and close to Wadi Adai- Wadi Kabir 132/33 kV line and the new 132kV of Qurum- Muttrah
lines. Both lines are connected to the new Hamriyah 220/132kV grid station which give the
system in the area a high reliability and operation flexibility in case of emergency within
Muscat area. In the same time, it give alternative supply to MSQ, Bousher and Ghubrah grid
stations. In return, the stress on 132kV line between MSQ and Wadi Adai released and
improve voltage level in the area.

6. Madinat Barka 132/33kV grid station (TX1 & TX2): New grid station was constructed at Barka
area (Batinah South). It consist of two 132/33kVx125MVA transformers. The station is
connected to Filaj-Muladah 132kV line as LILO. The purpose of the station is secured load at
this high growth area, maintain Transmission Security Standard requirement and to
transferred load from Barka Main Grid station.

7. Ibra 132/33kV grid station: New grid station constructed at Ibra area as 132/33kV, 2x125MVA
transformers and connected from Mudhairib grid station by a 132kV double circuit line
around 28km length. The purpose of this station is to meet the load growth, decrease voltage
drop at Dema Wa Al Tayeen area and to meet Transmission Security Standard requirements.

8. 132 kV OHL Awqad - Ashor part.1 & 2: Part 1 of this project was constructing a new 132kV
line (8.5 km double circuits OHL and 1.2 km 132kV UGC) whereas Part-2 of this project was
constructing a new 132kV double circuit line around 48.3 km. The purpose of this project is
to complete the ring of 132kV system and to meet the Transmission Security Standard.

9. JBB Hassan 132/33 KV Grid Station: New grid station was constructed at JBB Hassan as
2x125MVA transformers at Al Kamil area and connected by LILO (2x16km) of Al Kamil- Sur
OHL. This is required to meet load growth in that area and release loaded JBB Ali grid station.

10. Izki 220/132 kV Grid Station. The purpose of this project is to evacuate the power from Sur
power plant, support the voltage and power flow to Al Dakhaliah and Al Sharqiyah area and
to comply with the Transmission Security Standard requirements. This project energized in 4
July 2016.

11. Qalat Al Awamir 132/33 KV Grid Station: A new 132/33kV grid station at Qalat Al Awamer (Al
Dhakiliah Governorate) was constructed. The grid station consist of 2x125MVA transformers
and 8x132kV GIS bays. It is supplied via 2x0.62 km UGC LILO to the 132kV of Izki-Mudhaib line
and connected directly to Qalat Al Awamer 400/220kV grid station which is in the same
location. It will serve the new demand from the load growth and load transfer from the nearby
grid stations such as Nizwa and Izki.

12. Dhagmar 132/33 KV Grid Station: This project consist of a new 132/31kV grid station at
Quriyat (IWP) which consist of 132/11kV transformers and 2x132kV GIS at existing Quriyat
grid station as well as 7x132kV GIS at Daghmar and 3x50MVA transformers shifted from the
Mawalleh North Grid station with associated 132kV GIS. It is connected radially from Quriyat
grid station by around 4km OHL. The aim of the project is to supply the new IWP Quriyat.

13. Replacement of Mahadha 132kV AIS to GIS: The existing 14 x 132kV Outdoor Air insulated
switchgear (AIS) is replaced by indoor 14x132kV GIS. This is in order to solve the problems of
heavy fog and mist during winter and summer which causing frequent tripping of busbar due
to flash over of equipment insulators.

PROJECTS EXPECTED TO BE COMPLETED DURING 2017

Sr. No Project Planned

1 Dreez 132/33 KV Grid station Q2 2017


2 Salalah Free Zone 132/33 KV Grid station Q1 2017
3 Saada 132/33 KV Grid station Q2 2017
4 Dil Abdsalam 132/33 KV Grid station Q2 2017
5 Jebreen 132/33 KV Grid station Q2 2017
6 Suwaiq 132/33 KV Grid station Q3 2017
7 Ibri 400 kV Grid station Q4 2017
8 Mabaila 220 kV Grid station Q4 2017
9 Mawaleh North 132/33 KV Grid station Q4 2017
10 Reactors 400 kV Sur & Izki Q4 2017
11 Hay Asim 220/33 KV Grid station Q3 2017
12 Shinas 132/33 KV Grid station Q4 2017
13 Upgrading Muladha Q1 2017
14 Upgrading Liwa Q1 2017
3rd & 4th Tx. In Madinat Barka & Khadra
15 Q2 2017
Grid stations
Health, Safety & Environment performance
In 2016 OETC has completed a full year with two lost time injuries (LTI) involving one unfortunate
OHL construction fatality. Overall working hours summative for OETC and Contractor employee
recorded as 13 million hours and around 9 million safe man-hours since last LTI. This year shown
large number of projects as one of main challenges in HSE performed year particularly for OHL
construction. HSE reporting culture being improved largely which has been evident through the
number of reported near misses.

Major HSE Challenges Faced in 2016


Working at heights number of overhead line construction activities

New hazards and risks arising from the uptake and rapid network expansion both Live

electrical system and construction site

Off road / hilly terrain driving

Controlling the wide spread network

Maintain compliance with ISO 14001 and OHSAS 18001

Making aware and keeping in track with new Contractors and Consultants

Result of HSE Key Performance Indicators 2016

1 FATALITY

1 RISTRICTED WORK CASE (RWC)

2 LOST TIME INCIDENT


(Including the above fatality)

2 MEDICAL TREATMENT CASE

54 FIRST AID

1011 UNSAFE ACT & CONDITION

1012 NEAR MISS


LTIFR = Number of LTIs * 1000000/number of worked hours

Total Man hours worked 13 million


Total Safe Man Hours 9 million
Total Safe Man days since last LTI 249
LTIFR 0.15

Monthly statistics

Near Miss Reported Month Wise

Near Miss Reported for the Year 2016


150
130 144
118
110
90 84 108 83 86
74
67 85
70
72 48
50
30 43

10
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Near Miss

Five Years Performance Overview


2012 2013 2014 2015 2016
Fatalities 0 1 0 0 1
LTI 2 3 2 0 1
RTA 2 0 0 1 0
Million man-hours Worked 11.6 7.6 8 10.5 13
LTIFR 0.172 0.39 0.25 0 0.15
Million Safe man-hours
5.5 7.1 5.8 16.4 9
Worked since last LTI
Days since last LTI 193 323 260 625 249
Environmental Incidents 0 0 0 0 0

HSE Rewards / Appreciation

Throughout the year various HSE rewards given to OETC staff, contractors and consultants. The
purpose of these rewards to:

1. Improve HSE awareness across OETC staff, contractors and consultants


2. Encourage safe working practices and behaviours in work teams
3. Recognise and publicise good HSE performance to support improved workforce
motivation
4. Support beneficial change in the company safety culture
Near Miss Reporting Rewards

HSE Campaign
2016 HSE campaign kicked off with the theme of
TOGETHER ZERO ACCIDENT POSSIBLE. Overall
objective was to increase the level of HSE awareness at
every level. These events held at all Regional

Transmission and EPC Project sites with the


engagement of top management till the workmen level. Achievement results came quite positive and seen
improved HSE knowledge.
PEOPLE
Training
OETC looks at its Training and Development program as the primary ways through which the
performance of individuals are improved. It is the tool that allow to strengthen the skills and
knowledge of employee. OETC design its Training and Development Program to bring all employees
to a higher level of performance. As a result, this will foster the growth and the performance of the
company.

Number of training courses depending on the type of training and the methods of
implementation for 2016

In External External
Training Type Imported Total %
House in Oman outside Oman

Management &
Leadership 2 37 0 0 39 45%

Technical 3 6 3 24 36 41%

HSE 0 9 0 0 9 10%

IT 0 1 0 2 3 3%

Total 5 53 3 26 87 100%

In house : Training Delivered by one of OETC Staffs

Imported : Training provided by external trainer designed for OETC Staffs

External In Oman : Training Courses provided in Oman

External Outside Oman : Training Courses provided outside Oman


% of training courses depending on type
3%

10%

45%

41%

Management & Leadership Technical HSE IT

Number of training opportunities by training type and provider type

External External
In
Training Type Imported in outside Total %
House
Oman Oman

Management &
Leadership 14 325 0 0 339 42%

Technical 34 50 24 74 182 23%

HSE 0 275 0 0 275 34%

IT 0 3 0 4 7 1%

Total 48 653 24 78 803 100%

Management & Leadership Technical HSE IT

1%

34% 42%

23%
Total Expenses Spent on Training by Training Type

Training Fees Total Training Expenses (Fees , Ticket


Training Type %
(OM) ,Accomodation & Allowances )

ILM
Certificate 21,250 24,814 8.4%

Management 78,009.80 108,382.20 34.2%

Technical 84,158.98 129,823.79 39.3%

HSE 35,193.80 61,151.30 17.7%

IT 62 2312 0.4%

Total 218,674.58 326,483.29 100%

Total expenses spent on training by training type


0.40%
8.40%

17.70%

34.20%

39.30%

ILM Certificate Management Technical HSE IT

Number of Training Hours by Job Category

Training Type Num of Training Hours

Administration & Supervisory 5,376

Managerial 1,788

Operational 534

Technical 9,696
Other 486

Total Average Training Hours 17,880

On Job Training

The company made a number of training opportunities for On Job Training for students of
universities and colleges.

Number of Training opportunities for University & College undergraduate Students by


Specializations

Specialization Number of Students Trained at OETC

HR 5

Accounting & Finance 4

Communication 1

Computer Engineer 2

Electrical & Computer Engineer 2

Electrical Power Engineer 55

Electronic & Telecommunication 3

Information System 1

Information Technology 6

Instrumentation & Control 3

Total 82

Number of Training opportunities By University & College Name

Name Number of Students Trained at OETC

Sultan Qaboos University 8

Higher College of Technology 29

Ibra College of Technology 2


Ibri College of Technology 2

Mussana College of Technology 13

Nizwa College of Technology 12

Salalah College of Technology 4

Caledonian College of Engineering 1

College of Applied Science 1

Rustaq College of Applied Science 1

Middle East College 3

Gulf College 3

University of Michigan Dearborn 1

Sohar University 1

Fishermen Training Institute Salalah 1

Employees Completed their Studies in 2016

Certificate No. of Employees

Bachelor Information Technology 1

Bachelor of Electrical Power Engineer 9

Masters Business Administration 1

Masters of Electrical Power Engineer 2

Master of Science Finance and


1
Management

Total 14

In the area of development and upgrading of skills of Omani employees of educational aid and
scholarships it has reached for a bachelor's and a master's degree to (31).

Education Assistant & Scholarship Programs offered

Specialization No. of Employees


A. Education Assistant & Scholarships Specialization
Bachelor in Electrical Power Engineer 18

Bachelor in Business Management 5

Bachelor in Human Resource Management 1

Bachelor in Accounting 2

B. Scholarships outside Oman


Master of Quality Management 1

MS Energy and Power Systems Management 1

Ms Electrical Energy Systems 1

Ms Project Management 1

Exective Master of Business Administration leadership & strategy 1

Total 31

Social Activities
Social activities are considered as one of life pillars of the employee. It is needed by the employee
in order to strengthen its relationship with others and acquire the skills and values that will make
him/her able to face life. Social interaction increase the sense of belonging and ability to build a
balanced life through continuous interaction with social institutions that create atmosphere of
social interaction.

OETC volunteering activities during 2016


OETC participate with the group at staff volunteering program which arrange 22 volunteering
events were implemented in 11 governorates (two volunteering events in each governorate) , 500
staff from the Group were participated in all events include OETC participations. Also, OETC
employees participate at Injaz Oman completion which were 150 volunteered staff as mentors, 700
students representing 75 teams, more than 100,000 hours of volunteering we achieve as a group.
From the other hand, OETC participate with the other subsidiary to organize the conservation
campaign. It was a media campaign in all channels, choose best 8 stories about electricity
consumption from society, 40 adv. was published in Group social media channels, radio, TV and
outdoor advertisements.

OETC sport activities during 2016


Oman Electricity Transmission Company organized Ramadan Soccer Championship which were a
number of government institutions participated. It has been successful. The winner was Muscat
Electricity Distribution Company.
Financial Performance

The Companys main revenues from Transmission use of system charges and Transmission
connection charges were RO 95.84 million in 2015 as compared to RO 99.00 million in 2015,
registering a decrease of 3.19% and resulting in lower gross profit of RO 66.763 million in 2016
compared to RO 72.144 million in 2015 i.e. a decrease of 7.46%.

Lower revenue realization in Transmission use of system charges is mainly due to lowering
Notified Values in Price Control IV by the regulator.

Operating profit for the year 2016 is RO 51.395 million as compared to RO 56.755 million in 2015
i.e. an decrease of 9.8%. The Net Profit after TAX is 34.636 million compared to 41.684 million
registering a decreased of 16.91%.

The Gross Book Value (cost) of Property Plant & Equipment of the Company was RO 978.123 million
as at 31st December 2016 as compared to 870.643 million as on 31st December 2015 registering
an increase of about 12.34%.

Financial Performance Comparison 2015 vs. 2014 (Amounts in RO million)

Actual 2016 Actual 2015

120.00
97.42101.08
100.00
80.00
60.00
40.00 29.08
26.86
20.00 16.9517.47 34.64 41.68
- 11.019.31
Revenue
(incl.other Operating General &
income) Costs (Direct) Admin Finance Costs
Net
Expenses Profit(PAT)
Component of Total Revenue

Particulars RO (M)
2% Transmission
Transmission use of system 76.84 19% use of system
(TUoS) (TUoS)
19.00
Connection charges (CC) Connection
79%
charges (CC)
1.58
Other income & Finance income
97.42 Other income
TOTAL

Distribution Company-wise share of Transmission Use of System Charges

Particulars RO (M)
Muscat
Muscat Electricity Distribution 27.52 Electricity
Company (MEDC) 8%
Distribution
24.33 36% Company
Mazoon Electricity Company (MZEC) 24%
(MEDC)
18.81 32% Mazoon
Majan Electricity Company (MJEC)
Electricity
6.18 Company
Dhofar Power Company (DPC)
(MZEC)
76.84
TOTAL

Customer-wise share of Connection Charges


10%
Particulars RO (M) 10%
Muscat Electricity Distribution 7.39 39%
Company (MEDC) 16%
Mazoon Electricity Company 4.76
25%
(MZEC)
3.02
Majan Electricity Company (MJEC)
1.91 Muscat Electricity Distribution Company (MEDC)
Dhofar Power Company (DPC)
Mazoon Electricity Company (MZEC)
Others (Generation companies & 1.92
directly connected customers) Majan Electricity Company (MJEC)
19.00 Dhofar Power Company (DPC)
TOTAL
Others (Generation companies & directly connected customers)
COMPARATIVE FINANCIAL DATA & FINANCIAL RATIOS:

DESCRIPTION UNIT 2016 2015 2014 2013 2012 2011 2010 2009

COMPARATIVE FINANCIAL DATA :

TRANSMISSION
RO
USE OF SYSTEM
'000 76,844 81,727 76,080 65,163 46,241 43,413 41,332 38,417
(TUoS) REVENUE
CONNECTION
RO
CHARGES (CC)
'000 18,996 17,273 15,994 12,768 10,293 7,263 5,299 3,292
REVENUE
OTHER RO
REVENUE '000 1,583 2,081 1,757 8,665 1,167 901 511 1,260
RO
TOTAL REVENUE
'000 97,423 101,081 93,831 86,596 57,701 51,577 47,142 42,969

EARNING
BEFORE RO
INTEREST & TAX '000 51,395 56,755 54,153 54,597 31,810 27,574 25,801 24,487
(EBIT)

NET BOOK
VALUE (NBV) OF
RO
PROPERTY,PLA
'000 978,123 870,643 780,568 635,877 579,052 528,731 414,717 314,337
NT &
EQUIPMENT
RO
SHARE CAPITAL 500 500
'000 225,000 225,000 500 500 500 500
FINANCIAL RATIOS :

TUoS REVENUE /
RO
MWh SUPPLIED 2.408 2.669 2.839 2.976 2.198 2.346 2.527 2.514

TUoS REVENUE /
RO
MW SUPPLIED 12,390 13,855 14,364 14,913 11,334 11,515 12,187 11,497

EBIT / SHARES RO
0.228 0.252 108.306 109.194 63.620 55.148 51.602 48.974
DESCRIPTION UNITS 2016 2015 2014 2013 2012 2011 2010
TOTAL OUTPUT
(Regulated Units MIS Dhofar MIS Dhofar MIS Dhofar
Transmitted MWh 21,898,346 21,040,538 18,507,886 16,357,501
measured at exit 28,946,930 2,963,041 27,753,618 2,862,210 24,224,626 2,574,200
points)
ERGY LOSS % 1.58 1.34 1.7 0.9 2.3 1 2.68 2.7 2.2 2.7
PEAK GROSS LOAD MW 6,105 523 5,744 495.4 5,269 439 4,634 4,448 4,000 3,613
NUMBER OF GRID
# 78 72 63 7 57 55 44 43
STATION
INSTALLED
TRANSFORMER MVA 34,512 27,696 25,084 1312 20,641 18,399 15,076 14,393
CAPACITY
TOTAL LENGTH OF
220KV
Km 1591.00 0 1761.27 0 1,719.07 0 1467.03 1344.6 835 835
TRANSMISSION
CIRCUITS
TOTAL LENGTH OF
132 KV
Km 3,337.78 510.40 3,212.30 390.392 3,145.40 390.392 3,051.06 3,061.46 2,939.46 2,899
TRANSMISSION
CIRCUITS
TOTAL LENGTH OF
220 KV
Km 63.94 0 62.14 0 61.6 0 61.6 55.4 24 12
Underground
CABLE
TOTAL LENGTH OF
132 KV
Km 147.92 7.64 147.96 5.24 105.681 5.24 98.681 98.68 60 60
Underground
CABLE
SYSTEM
% 98.28 98.767 98.466 99.23% 99.65% 99.33% 98.46%
AVAILABILITY
SYSTEM RELIABILITY % 99.998 99.994 99.998 99.994 99.995 99.980 99.996
TOTAL LENGTH OF
# 684 0 - - - - - - - -
400 KV LINES
No. OF 400 KV GRID
# 2 0 - - - - - - - -
STATION