New electricity tariffs to be applied in 1st trimester of this year

(Photo: Envato Elements)
AMMAN — The government announced the new electricity tariffs that will be applied in the first trimester of 2022 and that will be calculated for three categories as follow: from 1 to 300 kilowatts per hour (kWh) 50 fils per kWh, from 301to 600 kWh 100 fils per kWh, and for more than 600 kWh, 200 fils per kWh.اضافة اعلان

The current tariffs are calculated for seven segments: from 1 to160 kWh per month, 33 fils/kWh, from 161 to 300 kWh per month, 72 fils/kWh, from 301 to 500 kWh per month, 86 fils/kWh, from 501 to 600 kWh per month, 114 fils/kWh, from 601 to 750 kWh per month, 158 fils/kWh, from 750 to1,000 kWh per month, 188 fils/kWh, and for more than 1000 kWh per month, 265 fils/kWh.

For the purpose of calculating the new tariff, the first four segments became two. The first segment’s tariff was set at 50 fils per kWh, the second at 100 fils per kWh; the three segments above 600 kWh became one, and the tariff of 200 fils per kWh.

Energy expert Hashem Aqel said that 93 percent of consumers will not be affected by the new tariffs, adding that households make up 45 percent of all electricity consumption.

Aqel, adding that there is a JD2-JD2.5 subsidy for consumption of less than 600 kWh and pointed out that Gazans living in Jordan and temporary passport holders will benefit from electricity subsidy.

“All economic sectors benefit from the new tariff, as the tariff was reduced in varying proportions, and this reduces the cost of energy for these sectors, which should be reflected in the prices of their products,” he said, stressing that the maximum load, which was a huge burden on all sectors, was canceled.

Energy expert Amer Al-Shobaki said that the new electricity tariffs, which the government said will be applied in the first trimester of this year, “came within the Jordanian economic reform program, in implementation of some requirements of the International Monetary Fund to offer direct support to those who deserve it and reduce the price of electricity on the industrial, economic, agricultural, hotel, commercial, and tourism sectors”.

He said that the commercial sector will see a decrease in the cost of electricity, when consuming more than 2000 kWh per month; the tariff will be from 17.5 piasters to 12.5 piasters, and therefore, “the segment with a consumption of more than 2000 kWh will benefit from it”.

Shobaki added that “a large part of the population will not be affected by these tariffs, even though not the 90 percent the government claimed”.

EDAMA has presented a set of recommendations regarding the various aspects of the new electricity tariffs. Among these, to incentivize the regular sector of consumers, mainly households, to install photovoltaic systems and subsidize part of the cost for those who have already installed them and for those planning to do so.

The agency calls for new legislation that supports individual consumption choices, like those of owners of renewable energy systems. EDAMA supports the introduction of storage systems of produced electricity or setting an upper limit of the amount that should be exported to the grid.

By doing so, there would be other benefits, according to the NGO, namely, a boost of the demand for the photovoltaic system and, subsequently, for the commercial sector dealing with these systems.

At the same time, the government cash subsidies to citizens who benefit from the solar system will be cancelled, while they will be kept for small consumers who cannot afford the new systems or do not have enough room for the equipment, according to EDAMA, which said that there should be a universal tariff for users of the solar systems.

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