Government subsidy to the electricity sector is projected to rise to OMR625mn in 2019, up from an estimated OMR580mn this year — an increase that the Authority for Electricity Regulation Oman (AER) has dubbed as “unsustainable”. The uptick comes despite the implementation of subsidy-free Cost Reflective Tariffs (CRT) for large industrial, commercial and government consumers early last year — a move that has nonetheless has spurred dramatic reductions in energy use by many among the targeted segment. However, rising population growth continues to drive up electricity demand especially in the subsidised residential sector — a trend the Authority hopes to cap and reverse through an intensive campaign in support of energy efficiency and conservation.