To tackle energy losses

The state-owned National Electric Power Company (NEPCO) is incurring such big losses that the Cabinet decided to hold a special meeting, a few days ago, to see what can be done to “save” the company.

Its losses since the beginning of this year alone stand at JD1.18 billion and are projected to rise to JD1.45 billion by the end of the year, a setback to the earlier expectations for the same period, which were of losses not exceeding JD996 million.

The biggest reason for such poor financial performance of the company is the interruption of supply of natural gas from Egypt due to repeated acts of sabotage.

The government is therefore searching for workable solutions to reduce NEPCO’s losses to bearable proportions.

One such solution is import of liquefied natural gas through the Port of Aqaba. This, however, requires proper facilities that so far are missing.

Another solution is to accelerate the import of natural gas from whatever source available, but this, too, is facing political and technical hurdles, and takes a long time to put into effect.

A fast-track solution could be to increase electricity tariffs for the public, but it is difficult to believe that Jordanians would put up with an additional  hike in electricity prices after the series of painful increases introduced over the course of the last few years alone.

Putting an end to electricity losses or theft would offer some relief, but would not solve the main problem.

Which brings one to the much advocated — by some, at least — solution: shifting increasingly to renewable sources of energy.

But for that to happen, there is need of political power, and that seems to be missing.

Against this backdrop, the government decided to turn this crisis to the Cabinet’s Economic Development Committee for consideration, with  a view to submitting operational ideas on how to reduce the burden on NEPCO.

Knowing how committees work usually, it might not be the best idea.

A better one would be to invite the private sector, especially the entities engaged in energy related projects, to search for a solution.

Such involvement might be costly for the private sector, but the returns are worth it.

The solution would probably involve a combination of sources, but whatever shape it takes, one thing is certain: there is need for more action than rhetoric, for practical work and not for more plans and committees.