How is the cost of electricity calculated in Jordan?

(File photo: Jordan News)
AMMAN — According to the government, the cost of one kilowatt-hour of electricity in Jordan is calculated based on the costs of the electrical system, Khaberni reported.اضافة اعلان

This overall cost can be broken down into nine categories: the cost of fuel used by power generation stations; the cost of electrical handling; power generation capacity costs; the cost of station operation and maintenance; costs involved in electrical interconnection with neighboring countries; the cost of energy generated from renewable energy sources; the cost of National Electric Power Company debts; administrative and operational costs of the National Electric Power Company; and administrative and operational costs of electricity distribution companies.

The price per kilowatt-hour for subscribers to the national grid is calculated by adding the aforementioned costs together and dividing them by the amount of energy sold.

Earlier this month, energy expert Amer Al-Shobaki said the average price of one kilowatt-hour in the Kingdom usually ranges between 11 and 12 piasters — one of the highest prices in the Arab world.

He attributed this high electrical tariff to the “exorbitant” cost of renewable energy contracts signed between the government and renewable energy companies, in addition to electrical losses estimated between 13 and 20 percent — “a high percentage compared to other countries”.

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