World Bank Calls for Government to Retain Option to Increase Electricity Prices

تم نشره في Mon 14 March / Mar 2016. 01:00 AM
  • Electricity Bills (Archives)

AMMAN — In a recently published report, the World Bank (WB) recommended retaining the option to increase electricity prices for the two years 2016 and 2017 in order to  balance out total returns and costs for the national electricity company in Jordan.

The Bank —having previously funded a USD250 loan to enhance the performance of the energy and water sectors, underlined in their report readiness to extend another loan after considerable improvements have been seen on the financial and operational performance of the two departments; conditioned, however, by the provision of comprehensive financial analysis and a general benchmark of best practices to be adopted in order to manage and lower general debt.

Among these improvements; the national electricity company has substituted diesel and traditional fuels with liquid natural gas, to generate more than 80 per cent of Jordan’s electricity, lowering overall costs. Additionally, Jordan now generates 10 per cent of the Country’s energy mix off renewable sources, noting that 3 wind and solar energy generation companies have entered the domestic sector.

On the other hand, having enforced the new pricing strategy for water and irrigation, the report shows the Ministry has yet to cover its supposed costs and expenses for 2015, and therefore required of a WB team of specialists to set the basic value for costs to cover the overall expenses of the water sector.