AMMAN
— According to a report by the website Global Petrol Prices, Jordan pays the
second-highest price for
electricity among Arab countries. However, the Kingdom
is considered a regional leader in the field of renewable energy — drawing 20
percent of its grid power from the sun and the wind. So why is the Kingdom’s
electricity bill so disproportionately high?
اضافة اعلان
According
to experts in the field of energy, Jordanian citizens bear the brunt of
“unfair” contracts signed in the past between the government and renewable
energy companies, which set “
very high prices” for power, without any
stipulations on the periodic review of those agreements and prices, Jo24
reported.
While
these contracts are the number-one reason for the high cost of electricity in
Jordan, secondary factors that contribute to the problem include poor planning
and management, and a high rate of electric waste, with upper estimates placing
losses in the range of 20 percent of total electricity flow.
The promise of interconnectivityHowever,
the situation is not hopeless. According to the experts, interconnectivity and
energy export projects with Iraq, Syria, and Lebanon could contribute to
reducing electricity costs in the future, along with the forthcoming expiry of
some government agreements with traditional and renewable electricity
companies.
A continued rise in electricity prices could cause deep damage to the Kingdom’s economy in other areas, weakening its ability to attract investments
Energy
expert
Amer Al-Shobaki attributed the Kingdom’s high electrical tariff to the
“exorbitant” cost of renewable energy contracts, in addition to electrical
losses estimated between 13 and 20 percent — “a high percentage compared to
other countries”.
In
Jordan, the average price of one kilowatt ranges between 11 and 12 piasters, one
of the highest prices per kilowatt in the Arab world, he noted.
“That
is why we are witnessing very high electricity prices in the Kingdom that do
not match the income of citizens,”
Shobaki said.
The sweeping impact of electricity costsSince
2016, electricity prices have been continually rising, with no signs of the
trend letting up in the near future, he noted. However, a continued rise in
electricity prices could cause deep damage to the Kingdom’s economy in other
areas, weakening its ability to attract investments, as energy prices often
create an obstacle to investment, the expert said.
Energy
expert Hashem Aqel called the agreements reached
with renewable energy companies “very unfair”, and said they have led to
“exaggerated” prices.
However,
the Ministry of Energy has begun negotiating with renewable energy companies to
reconsider these prices, Aqel said.
Furthermore,
electricity tariffs have been reduced in the agricultural, commercial, and
hotel sectors by 16 percent, the expert noted, urging similar measures for
domestic energy bills.
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