‘Gov’t not reconsidering electricity tariffs’

AMMAN — The government has no intention of reconsidering electricity tariffs despite the decline in international oil prices, according to a senior official.

Energy Minister Mohammad Hamed on Tuesday said households consuming over 600 kilowatts (kW) of electricity  a month, and whose bill exceeds JD50, will continue being subject to an increase of up to 15 per cent in electricity prices during the next five years.

The minister made the remarks during a meeting with members of the Jordanian delegation participating in the 5th Arab-German Energy Forum, which opens in Berlin on Thursday, the Jordan News Agency, Petra, reported.

In early 2014, households with electricity consumption over 600kW a month, and whose bill exceeds JD50, were subject to an increase of up to 15 per cent in electricity rates.

In August 2013, the government applied a new tariff system with a 15 per cent increase on all economic sectors, except for agriculture, which was exempted from the hike.

The increase in power tariffs will be implemented over the course of five years to bring the state-owned National Electric Power Company (NEPCO) to cost recovery.

The government currently subsidises the utility for households that consume 600kW per month and less at a total cost of JD500 million.

During the meeting, Hamed stressed the importance of renewable energy projects and the gas terminal Jordan has embarked on in reducing the energy bill by 30 per cent, according to Petra.