Gov’t to hike electricity prices to plug Egyptian gas shortage

تم نشره في Wed 31 December / Dec 2014. 01:00 AM
  • Several Jordanian electricity bills are pictured in this undated file photo

By Reham Zidan

AMMAN — The government is set to raise the price of electricity on Thursday by up to 15 per cent in an effort to cut the huge deficits running in the national electricity company, and to meet criteria set by international lenders.

The International Monetary Fund had agreed to extend Jordan $2.1-billion loan conditioned by economic reforms.

Official sources with knowledge on the matter said the government will forge ahead with the National Electricity and Power Company’s strategy to incrementally increase the prices of electricity until 2017, as the fall in Brent crude fell to less than $57 a barrel on Tuesday after global supply glut.

The sources, who preferred not to be named, said the “fall in prices hardly covers for the cut in the Egyptian gas supplies”. 

NEPCO has been running losses of more than JD1.2 billion since “Arab Spring” revolutions caused fluctuations in the Egyptian gas supplies to Jordan.