AMMAN -- An update to electricity prices, expected to be effective as of today, will be official within weeks, a senior official said on Monday.
Chief Commissioner of the Electricity Regulatory Commission (ERC) Suleiman Hafez said discussions over the issue are still under way between his agency and the government. Hafez, who last month said he expected electricity tariffs to rise as of September 1, told The Jordan Times that prices will go up within the "next few weeks" when the decision is made at the official level.
The plan to increase electricity tariffs is mainly due to the increase in fuel prices, according to the ERC chief, who said that electricity generation in Jordan is linked to oil prices although natural gas represents 80 per cent of the energy needed for the Kingdom's electricity production.
The rise in electricity prices for end-users will help address a widening deficit at the National Electric Power Company (NEPCO).
The company's director general, Ahmad Hiyasat, told the press last month that NEPCO is struggling with a JD50 million budget deficit that has forced the company to postpone several projects.
The expected update of electricity tariffs will take place every three months according to fluctuations on the international oil market, Hafez told The Jordan Times previously, explaining that if international oil prices go down, electricity tariffs will also decrease.
According to the ERC chief, a large segment of consumers will not be affected by the new pricing plan if adopted as it will exclude those subscribers who consume 160 kilowatts (kW) or less per month. These constitute 27 per cent of total subscribers to the service.
Meanwhile, those who consume between 160kW and 230kW, with an average monthly bill of JD10, will have to pay a total of JD0.70 in additional costs under the new tariffs.
Meanwhile, the category that consumes between 230-400kW, with a current bill of around JD27, will be charged an additional JD1.2, while those using between 400-750kW will pay an extra JD2, according to Hafez.
He said that this proposal is the basis of the discussions with the government and is subject to change accordingly.
By Omar Obeidat
© Jordan Times 2009
