Jordan government pledges to eliminate electricity tariff-related distortions

AMMAN — The government pledged to eliminate any electricity tariff-related distortions for residential and economic sector consumers, the head of the joint parliamentary Economy, Investment, Energy and Mineral Resources Committee MP Khaled Hassan said on Wednesday.

Hassan’s remarks came following a meeting with Minister of Planning and International Cooperation Nasser Shraideh and Minister of Energy and Mineral Resources Hala Zawati over eliminating electricity tariff-related distortions and cutting costs to encourage investments, the Jordan News Agency, Petra, reported.

The two ministers affirmed that the committee concerned with reconsidering the domestic and economic sectors’ electricity tariff is also considering a number of strategies to improve the economic cycle and protect low- and middle-income people.

Shraideh said that the Ministerial Economy and Investment Committee has held a series of dialogues on investments and reducing energy and electricity costs in all economic and service sectors.

The average electricity consumption for 93 per cent of residential utility customers is less than 600 kWh per month, Shraideh said, stating that the new tariff will not affect the customers’ bills. He added that residential utility customers, whose consumption is above 600 kWh per month, are only 7 per cent.

Zawati said that the committee is also considering reducing the number of segments from seven to three, stressing that there will be no increase in electricity costs for any Jordanian family that has government subsidies, or for Gazans and those who hold temporary Jordanian passports.

Zawati added that reduction in energy costs will stimulate the investment environment and increase export quantities. She expects the electricity-related decision to go into effect at the beginning of the next year.