MEZC - Annual Report 2021 - English-V13

Late His Majesty His Majesty
Sultan Qaboos Bin Said Sultan Haitham Bin Tariq
- May God rest his soul in peace - - May God protect him -

CONTENT 6
7
Mission, Value, Vision 8
CEO's Message 9
Previous board of Directors 10
Board of Directors 12
Executives team 14
Sector law and Regulations 18
CHAIRMAN’S Report 30
Corporate governance 34
Corporate strategy 38
Health, Safety and Environment (HSE) 50
Customer Experience 54
Human Resource 59
Information Technology & Cyber Security 69
Operation performance 74
Financial performance 80
Communication and Sustainability 84
Summary of Major Projects Achievements
Demand Forecast

4 ANNUAL REPORT 2020

Glossary of Terms: Authority of Public Services and Regulation
Mazoon Electricity Company
APSR Nama Holding Group
MZEC Health Safety and Environment
NAMA International Organization for Standardization
HSE Bulk Supply Tariff
ISO Transmission Connection Charges
BST Transmission Use of System Charges
TC Value Added Tax
TUOS System Average Interruption Frequency Index
VAT Customer Average Interruption Duration Index
SAIFI System Average Interruption Duration Index
CAIDI Voice of Customer
SAIDI Loss Time Injury
VOC Loss Time Injury Frequency Report
LTI Ministry Decision
LTIFR Restricted Work Case
MD Cost Reflected Tariff
RWC Learning Management system
CRT Working Day
LMS Virtual Private Network
WD Solar Power System
VPN Small and Medium Size Enterprises
PV system In-Country Value
SMEs Geographic Information System
ICV Main Interconnected System
GIS Rural Areas Electricity Company
MIS Dhofar Power System
RAEC
DPS

ANNUAL REPORT 2020 5

About this Report

Mission

“Lighting and Enriching Life
through Safe, Reliable and
Sustainable Electricity“

Vision

“To be leaders in providing
electricity in Oman by 2022“

Value

“Safety, teamwork,
professionalism, integrity
and respect“

6 ANNUAL REPORT 2020

CEO’s Message “

“Mazoon electricity Comapany believes that it can

achieve its vision and sustain the same by caring for
the safety of the employees, customers and public;
and by demonstrating adherence to HSE standards in
operations.
Improving the network reliability, security, and
performance by continuing to invest in its networks.
Transforming the company to a customer-oriented
organization by providing connections faster, supplying
quality power and minimising interruption frequency
and duration, proactively addressing customer’s
issues and above all educating and enlightening the
customers.
Managing its working capital efficiently and enhancing
cost efficiency and continuing to be a socially responsible
organisation utilising the resources judiciously and
economically, taking part and contributing to the
development of the nation.

Salim Said Al Kamyani

CEO Mazoon Electricity Company

ANNUAL REPORT 2020 7

Previous board of
DIRECTORS

Eng. Omar Ahmed Salim Qatan Ms. Fatma Khalifa Al Maskiry
Deputy chairperson
Chirman

Mr. Abdul Aziz Mohammed Al Kharusi Dr. Mansoor Al Hinai
Member Member

Mr. Sunil A Raykar Mr. Ibrahim Said Al-Sulaimani
Member Member

8 ANNUAL REPORT 2020 8

Board of
DIRECTORS

Chairman: Mr. Ibrahim Said Masoud Al Suleimany

Mr. Ibrahim Said Masoud Al Suleimany joined Mazoon Electricity Company
as a chairman on December 7, 2020. He also holds memberships in boards
of other Nama Group companies. He has diverse knowledge covering civil
service, oil and gas, wastewater and electricity sectors with almost 30 years
of experience working in the fields of human resources development, talent
management and corporate communication. Mr. Ibrahim simultaneously
handles the position of executive manager – Group HR at Nama Holding
and is responsible for developing and implementing a wide range of human
resource strategies for the entire group. He guides and pilots implementation
of an effective human resources strategy for Nama Holding companies to
ensure continuous updating of HR policy, processes and practice. He acts as
an internal consultant to other roles and directs the identification/resourcing
of human capital needs.

Mr. Faisal Khamis Mohammed Al Daoudi

Mr. Faisal Khamis Mohammed Al Daoudi holds the position of Group Risk and
Compliance Manager at Nama Holding. He is responsible for developing,
maintaining, implementing and monitoring Nama Group Enterprise Risk
Management (ERM) and Compliance Strategies. He has 19 years’ of work
experience having served in prestigious organisations performing diversified
roles in auditing risk management and compliance sectors. Holding BA
degree in accounting from Staffordshire University, Faisal has International
Certification in Risk Management from Institute of Risk Management (The IRM
–UK). He also has an International Certificate in Business Continuity (CBCI) and
an International Certificate in Compliance. to ensure continuous updating of
HR policy, processes and practice. He acts as an internal consultant to other
roles and directs the identification/resourcing of human capital needs.

MS. Munira Saloom Salim Al Harthi

MS. Munira Saloom Salim Al Harthi currently works as Board Secretary, Group
Document Management and Group Governance at Nama Holding Company.
A work experience of over 15 years in different companies and roles has
contributed to her unique leadership style and knowledge base. Holding an
associated degree in Finance and Accounting from City and Guilds London
Institute, UK, she has held leading positions at companies like Majlis Industrial
Services (Sohar Port Area), Oman Cables and Jotun Paints. She has a number
of certifications to her credit including CPD Certified in Business Process
Analysis and Mapping; MSP Foundation and Practitioner - Managing Successful
Programmes; PECB Certified ISO 900: 2015 Lead Implementer; IRCA Certified
ISO 9001:2015 Lead Auditor; ISO 9001: 2008 Quality Management Systems
and PECB Certified ISO 31000 Lead Risk Management.

ANNUAL REPORT 2020 9

Executives team

Salim Said Al Kamyani

Chief Executive Officer

Majid Nasser AbdullRahman
Al Busaidi Saleh Al Harassi

Chief Operations Officer, Chief Operations Officer,
Distribution Supply (Acting)

Sultan Saleem Saleem Nasser
Al Alawi Al Mahrouqi

Senior Manager Manager Healthy & Safety,
Shared Services Environment

Mohammed Salim Muntasar Abdullah
Al Ghenaimi Ambusaidi

Senior Manager Planning & Senior Manager Human
Asset Management Resources

Khalfan Nasser Dilip George
Al Burtumani Vayaliparambil

Senior Manager Senior Manager Finance
Regulatory & Corporate (Acting)
Affaires
Biju Joseph
Said Juma Padanilam
Al Busaidi
Business Development
Manager Communication Expert
and Sustainability

10 ANNUAL REPORT 2020

11ANNUAL REPORT 2020

Sector law and Regulations

The electricity sector in the Sultanate of Oman substation. The power lines go into substations
comprises of three separate and distinct near businesses, factories and homes. Here,
market segments: The Main Interconnected transformers change the very high voltage
System (“MIS”) in the north of Oman; the Rural electricity back into lower voltage electricity.
System of the Rural Areas Electricity Company The distribution system is the last stage in
(TANWEER); and the Dhofar Power System the electricity production, as the distribution
(DPS). system reduces the voltage and then transfers
electricity to customers. In addition to
The Oman Electricity Transmission Company substations, the distribution system includes
SAOC (OETC) is the monopoly provider wiring, poles, measurement, billing, and
of transmission services in the (MIS) Main related support systems.
interconnected System. OETC owns and
operates the 220 kV, 132 kV and 400 kV Mazoon Electricity Company pays Oman
interconnected transmission systems, and as Electricity Transmission Company to connect
system operator is responsible for the central to the company's network (distribution work),
dispatch of generating and desalination and uses the network (supply works). MZEC
facilities pays OPWP for bulk electricity purchases
through bulk supply tariffs, which include
After electricity is produced at the various costs paid by the company for its electricity
power plants, it reaches the customers who purchases.
use the electricity. High voltage transmission
lines carry electricity long distances to a

South South AL North Al Al Dakhilayah
Al Batinah Sharqiyah Sharqiyah 31,190

Coverage area 6,260 14,080 23,594
km2

Customers 175,055 79,548 82,567 136,266

Regulated 1,437,354 1,145,043 2,548,903
Unit distributed 3,861,619
MWh

Sales RO 60,749,800 22,171,668 15,461,349 40,571,955

12 ANNUAL REPORT 2020 12ANNUAL REPORT 2020

Certifications

13ANNUAL REPORT 2020

RCeHpAoIrRt MAN’S

Dear Shareholders, The entire management team shouldered
the responsibility and managed the
I have great pleasure in presenting the Annual challenging situation with utmost dedication
Report of the company for the year ended and commitment. The company quickly
31 December 2020. The year 2020 was an switched to adopting alternate means and
exceptional year due to COVID-19. It was a ways including the transformation to digital
year of unprecedented lockdown, restriction mode to continue our mission of ‘enriching
of physical movements and paranoia among lives through safe, reliable and sustainable
people due to the pandemic. The company power’. With necessary precautions and
wasforcedtofaceseverechallengesof supply by following the guidance of the Supreme
chain interruptions, financial constraints and Committee the company was able to carry
effects of economic crisis experienced across out the operations without interruption
the world. COVID-19 continues to present while protecting the employees by avoiding
significant health and economic challenges and limiting their exposure to the risks of the
to people and companies across the world. pandemic.
The safety and well-being of our employees,
customers and communities remained our There was also a change in the Board of
top priority through the year. Directors during the year, following the
decision of the Oman Investment Authority.
As the outbreak emerged, the executive The new Board of Directors consisting of
managementof thecompanyquicklyinitiated three members assumed office on December
contingency plans to manage the situation 2, 2020. We would like to acknowledge the
by taking appropriate actions. Business efforts and contributions of the previous
Continuity Plan was activated by appointing Board of Directors for their enormous
dedicated teams who were responsible for contribution to the progress of the company
managing the critical business operations, during their tenure.
office arrangements, sanitizations process,
permits for official travel and above all giving
appropriate directions to the employees.

14 ANNUAL REPORT 2020

Financial Performance

Though lower than expected the company continued to demonstrate growth, in customer accounts,
regulated units sold and sales revenue.

Total number of customers reached to 473,436 registering an increase of 16,008 net new customers
during the year. Similarly, the regulated units sold during the year reached 8,992 GWh, showing a
growth of 2.2% as compared to last year.

The total revenue comprising of the sales revenue, subsidy and other revenue for the year was OMR
351.636 million as against OMR 337.248 million in 2019, showing a growth of 4.3%. As the maximum
allowed revenue is determined considering the pass through costs, the increase in pass through costs
consisting of Power Purchase costs (Bulk Supply Tariff-BST), Transmission Connection charges (TC) and
Transmission Use of System Charges (TUoS) is also reflected in the increase in total revenue.

Operating costs showed an increase of OMR 13.6 million compared to OMR 267.7 Million of 2019
owing to the increase in (i) pass through costs by OMR 9.4 million, (ii) depreciation by OMR 2.7 million,
(iii) other direct cost by OMR 1.2 million; and (iv) spares and consumables by OMR 0.3 million.

The gross profit reported for the year was increased to OMR 70.32 million from OMR 69.54 million
reported in 2019.

The capital expenditure programme was also affected by the restrictions in carrying out the project
activities, following the outbreak of the pandemic. Further, the company also followed the direction of the
Ministry of Finance to reduce the capital expenditure considering the financial constraints. Accordingly,
the capital expenditure during the year was OMR 69.593 million showing a decline compared to OMR
84.403 million in 2019.

Commitment at improving the system policies characterised by
to the society reliability for better service the Sultanate’s encouraging
and safety of the people in the development story and
Omanisation in Mazoon area. excellent infrastructure that is
providing stronger economic
Electricity reached a It gives us immense satisfaction growth together with better
that the projects which the sharing of the benefits of
remarkable level of 98.5% company undertakes are in increased prosperity among
line with the expectation of communities. The Company is
with 542 employees in 2020. Oman Vision 2040 that lays proud to take part in the great
down the foundations “to visionary journey of the country
Rehabilitation of the build national capabilities and aims to contribute to this
distribution networks in the and achieve economic growth journey towards progress.
coastal areas of Jaalan Bani and social well-being.” At
Bu Ali at South Al-Sharqiyah the core of Vision 2040 are 15ANNUAL REPORT 2020
Governorate is a major
project that demonstrated
company’s commitment to the
society. The project is aimed

Operational Performance Business Outlook

In the distribution of power, no major outages The management is ambitious about achieving
were reported during 2020 thereby improving growth in business in the coming years after the
the SAIDI and SAIFI, the commonly used gradual recovery from distress and return of the
network performance indices. Customer economy to normal after the pandemic and the
communication was given a high priority which is economic crisis.
positively reflected in customer satisfaction rate
showing an improvement in ‘voice of customer’ We foresee challenges in 2021 associated with
with a score of 93% in 2020 as compared to 91% the implementation of new tariff for electricity
in 2019. consumption and the VAT implementation
expected to start in mid of April 2021. Yet we are
Health, Safety and optimistic of the growth in business though it is
Environment expected to stabilize at a lower rate than before.

Health, Safety and Environment (HSE) was given The company will also follow the directions
highest priority and the Board and management of Nama Holding relating to the privatisation
are committed to achieve its’ compliance. The announced for the sector.
Board allocates adequate time for discussion
of HSE performance in every meeting. Several Acknowledgment
steps taken by the management to improve
safety has helped to achieve the best results of On behalf of the Board, I would like to express
‘No Fatality’ and ‘No LTI’ during 2020. sincere gratitude to His Majesty Sultan Haitham
Bin Tariq for his wise and able leadership and
Strategic Vision and to the Government of the Sultanate of Oman. I
Achievements use this opportunity to thank Authority for Public
Services Regulation, Nama Holding Company,
The company continued to adopt the strategies the sector subsidiary companies, and our valued
which are built on six main themes - customer customers and all stakeholders for the continued
services, HSE, operational efficiency , IT and cyber support and cooperation.
security, human resources and communication
and marketing, with a view to achieve its vision I thank the previous Board members and
to be a “leader in providing electricity in Oman.” my fellow board members for their valuable
contributions in guiding and directing the affairs
16 ANNUAL REPORT 2020 of the company. The management team and the
entire staff of Mazoon Electricity deserve special
appreciation for their commitment, efforts, and
invaluable contributions during 2020, the most
challenging year ever, in successfully managing
the business and producing the desired results.

Ibrahim Said Masoud
Al Suleimani

Chairman - Board of Directors

17ANNUAL REPORT 2020

CORPORATE

GOVERNANCE

18 ANNUAL REPORT 2020

The company’s corporate governance system is built on the philosophy of
accountability, transparency, integrity, and sound ethical principles. This
is ensured by ethical business decisions and conducting business with a
firm commitment to values, while meeting stakeholders’ expectations. The
governance practices followed by the company align with principles outlined
in code of corporate governance issued by the Capital Market Authority/
Ministry of Commerce and Industry. Our board and committees are formed
as per the company’s governance philosophy that aims at enhancing long
term shareholder value, ensuring adherence to the law and ethical standards.
The company also formulates and implements strategies and policies with a
view to optimising stakeholders’ value.

The company also aims at achieving sustainable growth, and accordingly
focuses on all aspects of business including human resources, products,
services, technology, financial strength, customer satisfaction etc. In order
to realise this management basic policy and to increase corporate value
over the mid-long term, the company recognises that enhancing corporate
governance by establishing a management structure and proper delegation
of authority aligning with the corporate governance philosophy is of utmost
importance and accordingly have been established.

Transparency, accountability, fairness and intensive communication with
stakeholders are integral to our functioning. We believe in system driven
performance and performance-oriented systems. We accord highest priority
to these systems and protect the interests of all our shareholders.

The company has achieved significant progress in the implementation of
corporate governance through implementation of internal regulations and
procedures to manage the affairs of the company in alignment with the
governance principles. The company has also appointed an internal auditor
and legal advisor.

The company has significant intercompany transactions with the electricity
sector companies under the same holding group, and the transactions with
these major related parties are in the normal course of business and all such
transactions are at arm’s length.

The company’s board consists of all independent and non-executive
directors. The Board has constituted an Audit and Risk Committee and a
Board Executive Committee.

19ANNUAL REPORT 2020

20 ANNUAL REPORT 2020

Composition of the Board

Company’s Board consisted of five members nominated by the shareholders
Electricity Holding Company SAOC, Nama Shared Services LLC and Numo
Institute for Competency Development LLC. The five-member Board was
reappointed in the Annual General Meeting held on April 7, 2020. However,
pursuant to the decision of the Oman Investment Authority, the number of
members in the board was reduced to three and the new Board was elected in
the Ordinary General Meeting held on December 2, 2020.

21ANNUAL REPORT 2020

Details of the Directors of the company holding their office as of 31 December 2020 and their
membership in other companies in Oman are as follows;

1. Mr. Ibrahim Said Masoud Al Sulaimani - Chairman

• Nominated by Electricity Holing Company
• Chairman of other Board - NIL
• Member of other Boards - 3 (GPDC, Wadi Al Jizzi and OETC)
• Member of other committees of boards - 4 (Committee member in

MZEC, GPDC, Wadi Al Jizzi and OETC)

Coverage area

2. Ms. Munira Saloom Salim Al Harthi

• Nominated by Electricity Holing Company
• Non-Executive Director - Nill
• Chairperson of other Boards - Nill
• Member of other Boards - Nill
• Member of other Committees - Nill

Coverage area

3. Mr. Faisal Khamis Mohammed Al Daoudi

• Nominated by Electricity Holing Company
• Non-Executive Director - Nill
• Chairperson of other Boards - Nill
• Member of other Boards - Nill
• Member of other Committees - 1

22 ANNUAL REPORT 2020

23ANNUAL REPORT 2020

The meetings of the previous board up to December 2, 2020 and the attendances in the various
meetings during 2020 are given in the table below:

Table 1

2
2
2

2

24 ANNUAL REPORT 2020

25ANNUAL REPORT 2020

The meetings of the present Board from December 2, 2020 and the attendances in the various
meetings during 2020 are given in the table below:

Table 2

Audit and Risk Committee

Terms of Reference The Board constituted an Audit and Risk Committee
Composition of pursuant to Article (54) of the Articles of Association and its
the Audit and Risk terms of reference include all matters specified under that
Committee article.
The Audit Committee comprised of three independent and
non-executive directors of the Company until it was replaced
by a two-member committee following the election of the new
Board effective from December 2, 2020. Following resignation
of Dr. Mansoor Al Hinai from the Board, Mr. Ibrahim Al Suleimani
joined the board and replaced Dr. Mansoor Al Hinai in the Audit
and Risk Committee.

The meetings of the Audit and Risk Committee are as follows;
Table 3 : Audit and Risk Committee Meetings

26 ANNUAL REPORT 2020

Board Executive Committee (BEC)

The BEC was headed by the Chairman of the the election of new board effective from
Board and with two of the Board members December 2, 2020. The committee meetings
as members. BEC was discontinued after during 2020 are as shown in table below.

Table 4: Board Executive Committee

Remuneration Communications
Matters with the
shareholders
The company paid OMR1,019 thousand and investors
towards remuneration to the key management
personnel (including the directors The company maintains close liaison with
remuneration of OMR 32 thousand) during the major shareholder Electricity Holding
the year. Company (EHC), for various strategic
initiatives and policy matters. The company’s
"The compensation for key management financial and operational performances are
personnel (5 board members and 16 reviewed regularly by monthly reporting to
executives) during the year which include the Electricity Holding Company. The company’s
all benefit and salaries". annual report will be forwarded to the
shareholders of EHC, Numo Institute for
Non-compliance Competency Development LLC and Nama
by the company Shared Services LLC.

No penalty or strictures have been imposed
on the company by Muscat Securities
Market/Capital Market Authority or Ministry
of Commerce and Industries on any matter
related to capital market during the year.

27ANNUAL REPORT 2020

28 ANNUAL REPORT 2020

Distribution of Shareholding

As of 31st December 2020 the shareholding was as follows:

Table 5: Distribution of Shareholding

The Statutory Auditors

M/s. KPMG were the statutory auditors of the Company for the year 2020

29ANNUAL REPORT 2020

CORPORATE

STRATEGY

30 ANNUAL REPORT 2020

The strategic business plan aims to set a clear vision
and strategic direction to the business of the company
and to assist the management in focusing its attention
on the key responsibilities towards the shareholders
while complying with the regulatory requirements.
The plan identifies objectives, milestones, risks, issues
and challenges, in addition to the financial plans that
will need to be addressed during the period of this
plan. The business plan also addresses the associated
risks and challenges while envisaging the desired
state the company would like to achieve.
The company has grouped the strategic objectives
under six strategic themes. The company has adopted
MSP approach to manage the strategy implementation
and assigned Senior Responsible Owners for each
strategic theme to manage the related projects. A
strategic plan for each theme has been prepared
ensuring its’ alignment with other plans and milestones
have been set for achieving the targets.

31ANNUAL REPORT 2020

The strategic themes:

32 ANNUAL REPORT 2020

The strategic objective:

Improve network security, reliability, and performance
Enhance and implement 100% effective self-healing
system in QHSE.
To be a model of service excellence in meter reading, first
time resolution and customer satisfaction.
To improve communication with key stakeholder
Create high performance in working environment to
achieve professionalism.
Maximise return on investment and optimise quality
working capital management
Enhance digitalization and cyber security compliance.

33ANNUAL REPORT 2020

HEALTH,
SAFETY AND

ENVIRONMENT

34 ANNUAL REPORT 2020

Mazoon Electricity continued to work on implementing
a comprehensive HSE plan in all its activities. The main
activities were spreading awareness and building a
‘safe environment’ by enhancing the culture of safety
among the employees and the society. Mazoon
Electricity’s HSE team launched campaigns related
to home safety, public safety, road safety and illegal
electrical connections’ risks. 2020 was another year
marked by significant HSE performance and the
company has not recorded any fatality or Lost Time
Injury at all businesses.

35ANNUAL REPORT 2020

COVID-19 impact and
precautionary measures

The COVID-19 crisis has had a severe impact on and was diligent about communicating on
all aspects of the business. Mazoon Electricity important issues. The company activated working
formed a crisis management committee, to tackle from home as instructed by Supreme Committee.
the health emergency. Right in the early stage, the There were a couple of measures taken in line
business continuity team and HSE team prepared with the Supreme Committee’s decision and to
a plan to mitigate the risk in the workplace and facilitate the company’s business, for instance:
followed all guidelines set by Oman government’s
Supreme Committee in charge of dealing with 1. Activated digital signature
COVID-19. The committee met frequently and
managed the situation. 2. Internal invoices were sent through official mail

The company quickly responded to reduce the 3. Vital projects were prioritized and other projects
consequences of the crisis through a package of were postponed
measures:
4. Meter reading inside customer proprieties was
1. Created awareness about precautionary stopped and customers were encouraged to use
measures against COVID-19 self-reading

2. Activated Microsoft Team to hold online 5. Suspended all disconnections
meetings.
6. Hardcopy bills were stopped
3. Allowed use of employee’s card as a temporary
replacement for the finger scan. As per the Supreme Committee’s decision and
recommendations, the company was committed
4. Activated Nama self-service application to providing a safe environment for its employees,
their families, and the communities in which it
5. Approved critical elements to team’s emergency operates in. Initially it asked its employees to work
plan such as a control centre, contact centre, and at home to reduce transmission risks and to keep
operation centre. them safe.

6. Suspended all physical meetings, stopped all The company took extensive precautions to
trainings, interviews, and exams. protect its workforce, including increased cleaning
and disinfection, signage, screening and restricted
7. Stopped receiving any customers and access for visitors, and the availability of personal
encouraged them to use online applications orthe protective equipment. It also planned detailed
contact centre. processes in place to limit the transmission of
infection including social distancing and extended
Mazoon Electricity successfully worked to avoid hygiene protocols. The measures included
disruptions caused by COVID-19, while at the same increased cleaning and disinfection, high visibility
time acted responsibly to do what it could to prevent signage to maintain safe social distancing, and the
the spread of the virus. The company continued to availability of personal protective equipment.
closely monitor and assess the evolving situation

HSE Reporting system

In 2020, Mazoon Electricity maintained a stakeholders the importance of HSE reporting
proactive culture in HSE reporting through and closing the observation with a timely
NIMS. The company believes that every response.
accident can be prevented by instilling in

36 ANNUAL REPORT 2020

Rehabilitation projects of safety assets

Hazardous Operational
Waste HSE Audit
Management
In 2020, Mazoon Electricity continued the roll
Mazoon Electricity is committed to meet out of auditing HSE compliance with operation,
ministerial decision (MD) (18/1993) to collect maintenance to assess the performance of
all hazardous waste generated from its operational safety, with an emphasis on ESR
businesses. In 2020, the company maintained implementation in switching programmes,
implementation of environmental aspects working at height, lifting safe operations,
management and ensured that its operations environment management in switching
are in compliance with MD (48/2017) of programmes and office safety. Audit findings
environmental permit. came with effective findings that described
areas where improvement was required.

37ANNUAL REPORT 2020

CUSTOMER

EXPERIENCE

38 ANNUAL REPORT 2020

Results of the
Voice of Customers
(VOC) Survey
(2018-2020)

39ANNUAL REPORT 2020

Although it was a challenging year due to COVID-19 pandemic, Mazoon
Electricity has shown an improvement in the VOC. The continuous
improvement in Voice of Customers (VOC) to reach 93% in 2020 was due to
many reasons and not limited to the below listed initiatives:

Development and implementation of customer’s segmentation strategy: Focusing on the
requirements and needs of all categories of customers.
Development of Customer Experience Policy: Principles and criteria for measuring customers’
experience.
Development of Customer Experience Journey Map: Plan for customer’s path from providing
the service to obtaining it.
Improving customers’ loyalty: Enhancing the customer’s loyalty to the company’s services by
offering a welcome package consisting of: (service brochure, welcome message and gift).
Upgrading the current website: Restructuring the website and the way information is
presented to facilitate better navigation for customers.
Development of customer guide: New, easy-to-understand version and content focused that
allow customers to easily understand services related requirements.

Statistics of new connections

21083 2019
17443 2020

There were some plans followed as a part of the strategic plan
related to the customer service to enhance the mechanism of the
new connection

Creating pages to apply for new connections and additional Services in website.
Meeting with operation team and informed them to follow up the requests from their sites
Direct communication with wiring team by team leaders.

40 ANNUAL REPORT 2020

Statistics of number of customers by Tariff Type 2019-2020

Tariff Category

Commercial Domestic

99,360 / 2019 336,650 / 2019
104,016 / 2020 347,275 / 2020

Government CRT Others

14,154 / 2019 2,936 / 2019 4,328 / 2019
15,374 / 2020 2,217 / 2020 4,554 / 2020

41ANNUAL REPORT 2020

Meter reading/accuracy

Statistic of actual readings 2018-2020

91% 2019
86% 2020

Due to the COVID-19, the company was faced with many challenges during 2020. There was an
increase in the number of the meter estimated readings. To resolve this challenge, an awareness
campaign was initiated via SMS to encourage customers to use self-meter reading tool that was made
available in the official website of the company.

Bill distribution

Although 2020 was a tough year in achieving the annual target of bill distribution as this activity was
suspended as per the instruction of the Supreme Committee to deal with COVID-19, the company
recorded an increase by 23% compared with 2019 to reach 95%. This represent the average of monthly
meter reading.

92% 2019
95% 2020

42 ANNUAL REPORT 2020

There were some actions initiated to achieve this status which is summarised below
Green bill prize: Increase the total green bill customers to 242,292
Adding of bill calculator in website
Redesigning of CRT green bill
Green bill campaign by social media.
Ramadan Competition for green bill
Marketing of green bill during World Environment Day

Collection and customer contact

2020 has recorded a jump in the percentage of the electronic payment to reach 65% compared to the
31% in 2019. The corporation by the collection team and the contact centre was the main reason for
this achievement. The below actions have also contributed to this accomplishment.

31% 2019
65% 2020

43ANNUAL REPORT 2020

Improvement actions in collection

E-payment campaign by social media.
Monthly reminders to customer to use e-payment
Implementation of IVR bill pzayment
E-payment prizes (Electronic devices)
Update the e-payment page in Mazoon Electricity
Contact Centre (number of call, number of abundant calls…etc.) and complaints resolution.

44 ANNUAL REPORT 2020

Improvement actions in contact centre started from 2019 review
and update IVR tree

Added choice of talking to agent.
Increased the number of agents during 2020.
Recruited two team leaders.
Started implementing quality and knowledge assurance.

Statistics of services through the contact center and the company’s
offices 2020
Centralization improvement

answered outbound
calls calls

174617 2018 150836 2018
215111 2019 149464 2019
265054 2020 192335 2020

45ANNUAL REPORT 2020

total talk time average speed answer

The reason behind increasing the total talk time from 15,190 in 2019 to 19,057 in 2020 due to many
factors illustrated as following:

1- most of the inquires related to increase of prepaid services, customers where asking and
willing towards this service.

2- The new tariff category (Residential, Non residential, Commercial and CRT) which announced
by Government in last quarter of 2020 to be implemented by 2021 leads many customer to calls
and clarify more consequently raised the average speed answer from 0:01:45 to 0:01:59 in 2020.

3- The centralized service related to payment plan installment has been shifted from offices to
contact center, this service was offered to customers through the Mzec office’s to have an
installment to customers whom have difficulties in paying their bills to be in a manner
of installment to make the payment easier and to avoid the cutting of power supply. However,
for effective and efficiency of this kind of service the process shift to lead by centralized process
by the contact center.

Improvement in complaints
resolution

Resolving the complaints of the customers indicated better performance. The resolution of complaint
was shortened to one working day in 2020 compared to two working days in 2019

46 ANNUAL REPORT 2020

Complaint handling performance (average days to close customer
complaints) 2019-2020

2WD 2019
1WD 2020

This improvement in resolving complaints was due to

Changed Nature Name/departments services
The category of complaint was automatically recorded by system
The customer was called and updated about his complaint after one working day

It was made compulsory to close the complaint maximum by two working day
It was made mandatory to send SMS to account and customer number

% of electronic 31% 2019
payment 65% 2020

47ANNUAL REPORT 2020

Tariff reform

Due to the changes and developments in the state of the general economic plan of the country, which
is managed from ''Twazin 'and national support Center. There are set of initiatives under the Sultanate’s
Medium-Term Fiscal Plan (2020-2024). On of these major initiatives is the reform of electricity and
water subsidies. This will take a gradual implementation approach starting in January 2021 until 2025.
In line with the program for reforming electricity and water subsidies, new tariffs will be implemented
for electricity and water services effective 1 January 2021, which includes the gradual removal of
subsidies during the upcoming years with citizens (no more than two accounts) continuing to avail
from government subsidies until 2025.

The subsidy reform initiative aims mainly to;
Enhance the efficiency and sustainability of the utility sector
Improve the efficiency of government spending and its financial sustainability
Enhancing the social safety net ecosystem by rechanneling government subsidies
to the segments of society most in need.

National transformation program
for smart & Prepaid meter

This program will undertaking a 1.2 million smart meters rollout nationwide over the next five years.
Mzec is part of this initiative which is basically in line with the Sultanate’s Oman Vision 2040 for socio-
economic development, is considered a leading national project in terms of digital transformation,
with the smart meters set to replace mechanical meters, a statement reads. The objectives of Oman
Vision 2040 are focused on keeping pace with global developments and employing technology in
delivering electricity-related services effectively and efficiently that will support the development of
smart, sustainable cities with advanced basic services. Benefits anticipated include regular and more
accurate meter reading and billing, the elimination of discretionary meter reads and the development
of new services for customers, who also will be able to monitor and manage their consumption. This
new smart meters will minimize reduction in network losses and reduction in the duration of power
outages.

Mzec will bear the costs of replacement and operation of the new smart meters and steps will be taken
to ensure that meter readers are not impacted by the change.

48 ANNUAL REPORT 2020

49ANNUAL REPORT 2020

HUMAN
RESOURCE

50 ANNUAL REPORT 2020