MEZC - Annual Report 2021 - English-V13

The workforce in Mazoon Electricity is the most
valuable asset. With the network expanding
and the workload increasing , the number of
employees in the company increased from 541 in
2019 to 549 in 2020.

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Embracing digitalisation and measures to ensure the welfare faced by them in five areas.
with an intention to enhance of all. The IT department The feedback was used to find
learning and development designed unique tools to solutions that aligned with the
of the human capital of keep all the staff connected company’s vision and mission
the company, Mazoon staff and provided timely and and business needs.
designed online workshops on appropriate customer services.
different topics covering many Laptops and access to the All the above initiatives have
specialisations and topics system via VPN was also contributed to provide the best
that was not only related to provided. This step was helpful experience for our 473,436
power sector but that touched in activating contingency plan customers.
important subjects . of working online and for
accessing the system via VPN. Furthermore, the time period
Mazoon Electricity was This contributed to increasing for hiring was downsized after
committed to providing a safe productivity and loyalty of adopting a new recruitment
environment for its employees, company’s staff. In addition process. Previously new joiners
contractors and customers. the employee engagement would take almost three
Throughout the COVID-19 department completed an months to join from the time of
pandemic it took practical outpatient clinic programme advertising till the joining date.
steps and implemented robust for the staff to collect challenges

Customer served per employee

832 862

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INFORMATION
TECHNOLOGY &

CYBER SECURITY

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Mazoon Electricity advanced with its digitalization
plan. During 2020, more than 30 processes were
digitalized and moved to workflow process. In
addition, Mazoon Electricity developed its own
end-to-end supply chain system. The system
complies with Oman’s tender law and the
company’s internal procurement manual.
In addition, new unit rate system has also been
developed to enhance the task allocation to its
contractors.
Moreover, the company’s information technology
department passed the ISO27001 recertification
audit with zero nonconformity to the standard.
Several cyber security awareness sessions were
conducted throughout the company’s branches.

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During 2020,Mazoon Electricity technology department to ensure network security
conducted penetration testing and confidentiality of the
to enhance to evaluate it successfully closed 97% of the data. Additional laptops
resilience to any cyber-attack. were distributed to support
On the cyber security culture support requests. Furthermore, staff working from home.
development front, Mazoon Several security posters were
Electricity conducted several Mazoon Electricity has distributed and awareness
phishing email simulations to session were conducted to
evaluate its staff awareness successfully shifted its improve staff awareness about
level. cyber security risks associated
operation to the new office at with working from home.
In connection to end-
user support, information Adam with no customer service

interruption.

During COVID-19, Mazoon
Electricity was able to
support work from home and
provided VPN access to all,

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Digitalization Plan plans not only for the long run, which is consider a very high
but to meet the immediate
During COVID-19 pandemic, challenges they faced. As the percentage when compared
business leaders in Mazoon world heads toward digital
Electricity cognised that transactions, study shows to the business size. To
automation and digitalisation that, for organisations to
business processes are survive and adapt future way eliminate the risk of being
important for the success of of business trading, they must
the organisation. They also automate about 90% of their left behind and to stay ahead,
understood that automation business’ internal and external
processes is no longer processes. the company has planned to
considered a ‘nice to have’ but
it’s imperative to the operation. In Mazoon Electricity, nearly start transferring its business
This global pandemic crisis around 50-80% of internal
forced leaders to accelerate and external process are done process from manual to
their digital transformation manually (through paper)
automated. To achieve the

required transformation,

the organisation is planning

to implement a five year

digitalization strategy starting

from 2021 till 2025.

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OPERATION

PERFORMANCE

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a. Customer base

Customer category

Customer category CRT

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b. Capital expenditure

c. Demand profile
d. Unit sold GWH

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Unit sold per customer catogory GWH

Tariff category CRT GWH

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Unit sold per governance
South Al Batinah

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South Alsharqiyah

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North Alsharqiyah

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Al Dakhilayah

e. Electricity losses 11.11% 2020
12.09% 2019
Total losses
Total losses

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Staff

f. Electricity reliability

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24,441 2020 17,892 2020
24,265 2019 16,471 2019

Total length overhead network (Km) Total length underground network (Km)

Number of stations

Relaibility index*

*Non Audited figures

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FINANCIAL

PERFORMANCE

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a. Revenue Other
Revenue Million RO operating

Received revenue
subsidy
2.9
193
Received
Other operating subsidy
revenue
202
3.8

Revenue category

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Revenue category CRT
b. Expenditure

Expenditure per category Million RO

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c. Cost per category

Cost RO

d. Days sales outstanding (DSO)

109 2019 92 2020

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e. Profit

Million RO

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COMMUNICATION

AND
SUSTAINABILITY

Social media channels

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Oman Vision
2040 and
government
collaboration

We are inspired by Oman Vision 2040 and are
encouraged by its commitment to strengthening
the role of all sectors, including the electricity, in
serving as a true partner in national development.

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Taking inspiration from the Oman Vision 2040, Remote work
Mazoon Electricity is proud to collaborate
and embrace many of its national priorities, As per the guidelines of the Supreme
including building national capabilities, Committee, Mazoon Electricity company
Omanisation, SME development among allowed employees to work from home so
others. its business could continue while we kept
All the projects undertaken by Mazoon its customer safe while observing social
Electricity are in line with expectation of distancing protocols.
Oman Vision 2040 that lays down the During this time, the communication
foundations “to build national capabilities team constantly kept in touch and kept
and achieve economic growth and social well- providing staff information on work-from-
being.” home protocols, safety guidelines, how
At the core of Vision 2040 are policies to communicate with their manager and
characterised by the Sultanate’s encouraging information flow. Information about meetings
development story and excellent infrastructure and briefings were conveyed too.
that provides stronger economic growth The main concern of the team was to make sure
together with better sharing of the benefits employees are safe and healthy. It constantly
of increased prosperity among communities shared information about good hygiene
- Mazoon Electricity promises to contribute to habits such as hand washing protocols,
this progress journey. using hand sanitizer, avoiding touching the
face and observing social distancing to help
Communication initiatives mitigate the spread of COVID-19. The team
and achievements: made posters, sent out special messages
and delivering essential health and safety
The COVID-19 pandemic was a crunch information sent out by our health authorities.
situation unlike any other the world had
undergone in living memory, touching Keeping employees updated
almost every business around the world.
During a time like this, it was crucial for the With the situation evolving constantly, the
communication team to make internal and department made sure it updated employees
external communications a priority. To make at every step. Whether it was the decision to
it a priority, the team ensured it had the right switch to remote work, come back to office or
tools to keep employees and customers well when an employee at worksite tested positive.
informed. This gave it an opportunity to stay They alerted as and when messages required
on course and to keep our people safe. to be sent and kept employees informed
To effectively communicate communication about updated COVID-19 company policies.
department had a strong communication plan
in place. The team made sure its response to Rehabilitation and communication
the evolving situation was managed well. It
used various communication channels and With an intention to boost efficiency, enhance
made sure all the staff were aware about reliability and expand serving capability in
them. The department made certain that
Mazoon Electricity employees received key
information from the company before they
heard it from somewhere else.

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2020, Mazoon Electricity started executing Online courses activated
a significant project for rehabilitation of the
distribution networks in the coastal areas With an aim to raise competency levels across
of Jaalan Bani Bu Ali at South Al-Sharqiyah the company, Mazoon Electricity activated
Governorate. The communication team kept online courses with an intention to continually
messaging channels ever active and kept in develop employees’ competencies. The
touch with the customers constantly. significance of such courses is not only
related to enhancing individual employees’
Internal communication performance but also to improve the overall
committee quality of services provided by the company.

To encourage our staff to improve their Renewables
competency, Mazoon Electricity has formed
an internal communication committee. Renewable energy utilization in Oman is
The establishment of this dedicated team a topic of growing interest for the Omani
comes under the employee development government and the private sector. The focus
implementation initiative. The committee of the company in this initiative presents
is tasked with a process of engaging a step in the direction toward renewable
employees and improving their personal energy vision of Oman 2040, and also aims to
and professional skills which is expected reduce the dependency on non-renewables;
to reflect in the company’s overall this will help Mazoon Electricity in reducing
development and achievement of its goals. the demand of the station and reduction in
The members will encourage employees to the electricity bills.
participate in internal and external events Moreover, the company has worked
linked to their skills. towards creating public awareness about
renewable energy; and contribute to the
Toastmaster sessions development of the community by providing
support for businesses to work in PV system.
Furthermore, Mazoon Electricity introduced The organisation works towards finding
weekly Toastmaster sessions with an intention sustainable solutions to protecting the local
to make employees improve their public environment and saving it for the generations
speaking skills, build leadership abilities, to come.
maximize personal growth, build self- The concepts of solar powered systems
confidence and self-awareness. are here to serve in a convenient and
Recognising that new skills and ways of sustainable way in long-term investment.
learning will help employees grow, Mazoon The topic of renewable energy is one of
Electricity uses a variety of methods, initiatives the highly discussed topics amongst the
and programmes and has made training environmentalist today, as it can find ways
and development an integral element of its to reduce climate change. The main
strategy. It has adopted continual learning as challenges and issues of noncompliance are
means of encouraging employees’ growth summarized below.
and gaining a highly skilled work force.

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Non-environmentally friendly: Use Environment initiatives
of utility grid supply can play a major
role in increasing the carbon footprints Safe collection and disposal of lead acid
which are created from non-renewable batteries
sources. When the use of solar and In line with its environmental sustainability
other renewable energy increases only practices, Mazoon Electricity signed an
then the problem of exhaustion will agreement with Oman Environmental
decrease from the planet. Services Holding Company (be’ah) for safe
Cost ineffective: As these loads are collection and disposal of lead acid batteries
dependent on utility grid supply, (LAB).
Mazoon Electricity will require paying The agreement helps Mazoon Electricity
bills based on the amount of power to safely dispose of chemicals used in the
consumed to electricity provider every battery units in the main electrical stations.
month. Hence, the operation costs are be’ah will be responsible for collecting and
maximized. transporting LAB from Mazoon Electricity
Perishable source: Since gas/oil energy to certified processing and recycling facility.
is limited; chances of non-availability be’ah’s action will help Mazoon Electricity
and away from utilizing might appear. ensure that its work processes are in
Power Consumption: The stations accordance with the stipulated environmental
and offices consume an average of laws of the Sultanate. be’ah will also provide
238,710.32 Kw/annually. Mazoon Electricity with approved LAB waste
collection pallets that help hinder acids from
Social initiatives leaking.

‘For Lasting Prosperity’ Environmentally friendly
To support Oman Government’s initiatives electrical transformers
to mitigate the social and economic impacts
of COVID-19, Mazoon Electricity was part Mazoon Electricity Company won the
of Nama Group’s visionary campaign ‘For ‘Environmental Upgrade of the Year’
Lasting Prosperity’. The campaign, one of recognition at the 2020 Asia Power Awards’ in
Nama Group’s social sustainability initiatives, recognition for its successful environmentally
aims to help those who are directly affected friendly electrical transformers.
by the pandemic, namely families of social Understanding that current and future energy
security and SMEs. Being one of Nama Group’s challenges require a market efficient, reliable,
distribution and supply companies, the and environment-friendly technology,Mazoon
families and SMEs that comes under Mazoon Electricity uses modern approaches to
Electricity will benefit from the initiative. implement suitable environmental upgrades.
To carry out the campaign, Nama Group As part of this strategy, the company began
established a fund with an initial contribution using environment friendly transformers
of OMR 300,000 to equally cover electricity which use green oil as an insulating medium
bill payments for families of social security rather than traditional mineral oil. Mazoon
and SMEs. All donations from Nama Group Electricity was honoured with the Asian Power
and other donors will benefit the targeted Awards for its state-of-the-art execution
categories of individuals and SMEs by capabilities of this important project.
covering their electricity bill payments. The
campaign has been launched in partnership
with the Government Sector (Ministry of Social
Development, Riyada and Al Rafd Fund) and
Dar Al Atta’a.

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The green oil transformers project sets a The company, constantly encourages its
global benchmark and is differentiated by contractors to hire Omani talents who are
the environmental and socially responsible serving almost half million customers across
approach.Mazoon Electricity believes that shift governorates in Oman.
to green oil in transformers is one of the key
steps towards greener and more sustainable SME support
future transmission and distribution networks.
The chance to use a product which uses As part of its commitment to high quality
biodegradable oil was appealing to Mazoon and professional operating standards in
Electricity which is continually looking at more distribution operations, Mazoon Electricity
environmentally sustainable options. Company continue to issue internal electrical
wiring license to electricians, thereby giving
ICV (In country value) an opportunity to SMEs.
To obtain a license, Omani electricians must
Being committed to the implementation of meet certain requirements and demonstrate
its optimised In-Country Value (ICV) strategy, their knowledge, skills and ability to conduct
Mazoon Electricity is earnestly dedicated to electrical wiring installations. The Omani
increasing Omanisation rates and developing candidates who want to obtain a license must
the skills of the national workforce. have a higher secondary certificate or six
As part of its intensive efforts to develop months training certificate in electricity from
the national workforce in Oman, Mazoon an authorised institute.
Electricity Company has achieved a major Mazoon Electricity conducts written exams
milestone of 98.5% Omanisation during the and practical test for candidates interested
year 2020. in securing a license. Once the electrician
receives his license, he will be allowed to
install electrical wiring for buildings as per set
standards.

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SUMMARY
OF MAJOR
PROJECTS

ACHIEVEMENTS

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Network System
Development

Mazoon Electricity continued to execute the
projects planned for 2020 without compromising
on safety and quality despite the COVID-19
pandemic situation. It managed to complete most
of projects as per the proposed plan. A number
of major projects were completed and added to
the network. The value of the projects work done
during 2020 is approximately OMR 66.5 million.

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2020 YTD VOWD revised budget
2020 YTD VOWD actual

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.

Coastal areas
networks project

One of the key important projects is related to
renewing the distribution networks in the coastal
areas of South Al-Sharqiyah Governorate that
our company has undertaken. The electrical
networks have been affected in the coastal areas
due to external factors such as high humidity,
high salinity and wind loaded with sand grains.
These factors have caused the disruption of
the conductors, corrosion of external steel and
damage of LV cabinets, transformer conservators,
radiators, support steel work and stays leading to
frequent power outages in these areas. By taking
up these coastal projects, MZEC has ensured the
commitment in enhancing the reliability and quality
of electricity for the customers in its distribution
area. MZEC is adhering to all safety procedures
while carrying out extensive measures in the area
to regenerate the network. The project will be
executed through different phases at a budget of
over OMR 15 million. These projects are in line with
expectation of Oman Vision 2040 that lays down
the foundations to build national capabilities and
achieve economic growth and social well-being. At
every step possible, Mazoon Electricity intends to
contribute to this progress journey of Vision 2040.

By renewing the electrical network in the coastal
areas, MZEC is continuing to invest in enhancing
customer experience and improving efficiencies. As
per the vision of the company, MZEC will continue
to enrich the life of our customers by providing
reliable and sustainable electricity.

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DEMAND
FORECAST

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The peak load of Mazoon Electricity increased
gradually but the growth is changing from year
to year depending on the situation during each
year. The following figure shows the percentage
of growth from 2008 until 2020. It is obvious that
the percentage of growth increased rapidly in
2011 and 2012 and there was a sharp drop in
load growth in 2010 due to the adverse weather
conditions. In 2019 the load dropped sharply to
1.2% from 6.8% in 2017 because of the ongoing
economic crisis.

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In addition, with the government applying Furthermore, this year, the load growth and
Cost Reflect Tariff (CRT) since January 2017 load consumption behavior were affected
it is directly affecting the load behavior of due to the COVID-19 pandemic and oil price
large customers. CRT, a major component drop. Due to this, Oman government took
of the revenue is a government subsidy and various measures to limit the spread of the
the company continues to depend heavily on pandemic such as to close government offices
the government for their support. The Cost and working from home, stopping some
Reflective Tariff (CRT) is contributing 34% commercial activities and factories, stopping
of the total revenue that includes industrial, studies, and closing mosques. Thus, the load
commercial, government and large customers growth increased just 1% as compared to the
whose annual consumption exceeds 150 3.9% last year.
thousand KWh (In 2021, CRT customers
whose annual consumption exceeds 100
thousand KWh).

Mazoon Electricity Peak Load MW & % Growth

Figure 1: Mazoon Electricity peak load

The average growth as seen in the above that will be driven by considerable number of
figure is approximately 6% for all Mazoon governmental investments in form of tourism
Electricity area. It is expected to increase the projects, infrastructure projects, and industrial
load in the upcoming years since Mazoon projects as well as private sector investments
Electricity recognised non ordinary growth accompanying them.

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Load Curves

To give a general view of the load behavior, the load profiles for Mazoon Electricity taken on
Wednesday August 5, 2020 which is the day when Mazoon Electricity peak was recorded and
the same is presented in the figure Figure 6 below. The highest load was recorded at 15:00
hours –due to the number of people who returned home to take rest after their working hours.
The load recorded was 2256 MW.

Daily Load Carve (5 August 2020)

Figure 2: Daily Load Profile of MZEC

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Similarly, a weekly load profile covering the period from 2nd August to 8th August 2020
was designed in Figure 7 to show the load behavior of customers in a typical week of the
year. The selected week included Mazoon Electricity peak day. It is obvious that the load
during weekends is slightly less than that during normal days.

Weekly Load Profile (2 August - 8 August2020)

Figure 3: Weekly Load Profile

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To complete the picture, the yearly load profile for year 2020 until October was also
plotted in Figure 8. The yearly load profile was obtained from spotting the highest
reading in each month to the maximum load profile for the entire Mazoon Electricity
System as well as for each governorate.

Yearly Load Profile

Figure 4
Mazoon load curve follows typical load behaviour in hot countries as the peak period is in summer
season that starts approximately in April and ends in September. It can be also of importance to
note that Mazoon Electricity peak is almost three times its minimum load recorded in off peak
period during January and February. The demand side management needs to consider this issue
to minimize the gap between peak period and off-peak period which no doubt will result on
savings at generation, transmission, and distribution systems.
As can be seen from the graph of Figure 8, South Al Batinah Load represents the highest load among
all the governorates followed by Al Dakhilyiah and Al Sharqiyah (South + North) governorates.

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Mazoon Electricity in GIS department has realised many achievements in the year 2020. The achievements were:
The Geographical Information System (GIS) is currently considered as the master data repository for MZEC’s
asset data. The asset data in GIS includes the location information, asset attributes, and technical data. The
reliance on GIS In different asset life-cycle activities as long as customer service activities is increasing. Therefore
and in order for MZEC to keep a comprehensive and accurate inventory of the physical assets data and better
utilization of the GIS, the following improvements were achieved during 2020”

GIS Gaps Project ABS Naming Implementation GIS DB Tuning
Convention of GIS Data (Phase One)
• Started surveying of GIS Improvement plan
GAPs locations in South • Comparison of ABSs • Implementing GDB Tuning
Al Batinah and Al Dakliyah between SLD and GIS • Completed the missing (Phase One) in level of
Governorates. networks and update customer ACs as much as GIS domains, new/remove
missing ABSs in GIS. possible in coordination fields, and data duplication.
• So far, statistics of assets with other related
surveyed and added to GIS • Implementation of new departments (GIS-CRM
DB are: ABS Naming Convention Reconciliation = 98%)
standards in GIS as available
o 24.5 KM of 11 KV and updated in SLDs. • Completed critical missing
lines attributes as much as
possible (85%)
o 22.2 KM of LV lines
• Fixed most GIS QAQC
o 57 DSS - GMT errors

o 36 DSS – PMT

New GIS Mobile Viewer (based on
Portal for ArcGIS)

• Update GIS Data on Mobile
• Add MoH Plots
• Classified the mobile user and map content based on
districts and/or team job operations
• Synchronised mobile feedbacks with GIS DB

Implementing New GIS Mobile App for GIS Webviewer Renew GIS
GIS Webviewer Wiring Inspectors specific for Assets Applications
based on ArcFM Performance Team Maintenance
Web (HTML5) • Developed and Contract
implemented new GIS Development of a GIS
• Officially, published new Mobile app for wiring Webviewer specific for • Extend GIS Applications
GIS Webviewer (ArcFM Web Inspectors to enable them assets performance Maintenance Contract to
–HTML5). Also, developed to define new connection department. Requirements end of first quarter of 2022
new enhancements on New accounts and to draw a that include web editing of
GIS Webviewer for switch connection sketch for metre specific GIS attributes and
locator, feedback, develop location, service cable, and map contents.
home page, trace a feeder, service source. The sketch
and other tools. is linked with GSTS new
connection workflow that
will increase the level of
completed NC jobs and the
GIS data accuracy

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