Jordan set to raise electricity rates for 2013, 2014

• 12 years ago (2012-11-13)
• David Flin

Middle East 326 North America 1021

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The Jordan government is finalising a proposal to raise electricity rates by 18 per cent over a two-year period, according to the Ministry of Energy. A source in the Ministry of Energy said that the Cabinet is currently considering a proposal to raise electricity prices by 5 per cent in 2013, and 13 per cent in 2014, in order to cut energy subsidies that are forecast to exceed $2.8 billion by the end of this year.

Under the proposal, which would divide consumers into nine brackets based on energy use, average prices would reach $0.25 per kWh, in a bid to close the gap on the National Electric Power Company’s (NEPCO’s) $0.27 per kWh generation costs. According to officials, the Cabinet has moved to postpone the electricity price increase due to its impending decision to lift fuel subsidies, expected by the end of the month. The Ministry source said: “The Government has decided to commit to ending energy subsidies, but all Cabinet members agreed that now is not the right time to do it.”