All existing generation companies in Oman have been competitively tendered and are 100% private except Rural Area Electricity Company, which is a government company concerned with generating electricity in areas not connected to the Main Interconnected System (MIS) or the Dhofar Power System (DPS). The Authority ensures that these competitions are conducted in a fair and transparent manner. In MIS and DPS, NPWP will pay the generation and desalination companies for the purchase of capacity and generation in accordance with the conditions stipulated in the power / water / water purchase agreements. The generation and desalination companies are also paying Oman Electricity Transmission Company for its network connection.

After electricity is produced at the various power plants it has to reach the customers that use the electricity. High voltage transmission lines carry electricity long distances to a substation. The power lines go into substations near businesses, factories and homes. Here transformers change the very high voltage electricity back into lower voltage electricity. The distribution system is the last stage in the electricity production, as the distribution system reduces the voltage and then transfer electricity to customers. There are two companies licensed to distribute electricity in the Sultanate of Oman, which are Nama Electricity Distribution Company and Dhofar Integrated Services Company. The two companies pay the Oman Electricity Transmission Company to connect and use the transmission network.