Oman Electricity Transmission Company has been established as a closed joint stock company (SAOC) in the year 2003. The Law for the Regulation and Privatization of the Electricity and Related Water Sector was issued pursuant to the Royal Decree No. (78/2004) states the functions and duties of the Company.

The Transfer Scheme was issued pursuant to the Law to affect the transfer of electricity and related water activities from the Ministry of Housing, Electricity & Water to the new established companies as per the functions of each of them with effect from 1 May 2005. The Company was formed with a capital of R.O. 500,000 (Five Hundred Thousand Omani Rials) divided into five hundred thousands shares, each with a nominal value of one Omani Rial.

The company is wholly owned by the government represented by the Electricity Holding Company (EHC)(A Company also wholly owned by the government) with 99.99% of the shares and the Ministry of Finance with 0.01% of the shares.