The
National Electric Power Company (NEPCO) has paid JD380 million to private energy generating companies
for unused electricity because of capacity clauses in contracts between the company
and private energy suppliers, head of the
Lower House Energy Committee, Firas
Ajarmeh, told
Jordan News.
اضافة اعلان
Jordan's electrical capacity is
6000 megawatts, while the country's annual average load usage is between
2000-2500 megawatts. Therefore, the amount of redundant energy is between
3700-3800 megawatts. NEPCO has been paying for a part of that unused energy.
"For example, if a contracted
company produces 200 megawatts and the government needs only 100 megawatts, the
government would pay for the 100 megawatts it needs and partially pay for the
other 100 megawatts. These payments have accumulated to reach JD380
million," Ajarmeh said.
These payments result from an
oversight in the contract clauses between NEPCO and private electricity
producers. So far NEPCO has been unable to find a solution for the excess
energy produced or to the faulty contracts that are forcing it to pay millions
for unused electricity.
Currently, NEPCO has a JD5.5
billion debt, with a yearly interest of about JD118 million, economist and specialist
in oil and energy affairs, Amer Shobaki, told
Jordan News.
The rising debt of the company resulted
from the increase in fuel prices a few years ago when oil prices reached $140 a
barrel in the international markets,” Ajarmeh said. NEPCO bears the losses because
it supplies fuel to public and private electricity producers it has contracts
with. “This is a major blunder: Why would NEPCO buy the fuel and endure losses
when its partners would only make profits? It’s a big issue that must be
resolved," he added.
Shobaki pointed to long-term
contracts NEPCO has with energy producers and which it can’t retract because of
penalty clauses.
One possible solution according to
by Ajarmeh and Shobaki is to export excess energy and to expand the electrical grid
in the Kingdom.
Jordan is already exporting 80
megawatts to the West Bank. Next year it will supply Lebanon with electricity
through the Syrian-Lebanese power grid. But
Lebanon only requested 150-250
megawatts and this small amount is due to the limitation of the Lebanese
infrastructure. Another option is Iraq which has been in talks with Jordan to
import electricity, but this may not happen because
Saudi Arabia provides
cheaper energy through a pre-existing power grid.
"The options are limited.
NEPCO should disclose how these contracts with private energy producers came to
be," Shobaki said.
Shobaki said that the power
company should be liquidated since its debt is now out of control.
NEPCO and the ministry of energy
refused to give statements to
Jordan News.
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