AMMAN — The Energy and Minerals Regulatory Commissions (EMRC)
adjustment to the electricity tariff in favor of distribution companies in 2022
resulted in additional losses of approximately JD151 million for the National
Electric Power Company (NEPCO),according to the Audit Bureau's report, Al-Ghad
reported.
اضافة اعلان
According to the recent report, the application of the debt
management plan approved by the Cabinet on April 5, 2023 was not observed in
terms of ensuring the necessary operational revenue for the company and
restructuring the debts. The report highlighted the accumulation of debts from
ministries and government institutions owed to electricity distribution
companies, leading to delays in paying electricity prices to the NEPCO.
The report also noted the government's resort to addressing
overdue electricity debts through offsetting, imposing additional financial
burdens on the NEPCO, resulting in a liquidity reduction of about one billion
dinars, leading to a cash deficit, increased borrowing, and raised overdraft
facilities, consequently increasing the company's indebtedness and financing
costs.
Furthermore, the accumulated losses reached around JD5.1
billion at the end of 2021, exceeding 75 percent of the paid-up capital,
prompting the need for specific measures according to Article 266-1 of
Companies Law No. 22 of 1997, which requires liquidation if losses reach
three-quarters of the capital unless the General Assembly decides to increase
the capital.
The report recommended addressing and correcting violations
and observations in accordance with regulations. In response, the Prime
Minister Bisher Khasawneh requested a reply from the Director-General of the
NEPCO, and corrections were made in the company's response, with ongoing
monitoring of the situation.
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