NEPCO’s draft budget estimates JD211 million decline in revenue in 2022

An undated photo of the National Electric Power Company’s (NEPCO) headquarters. (Photo: NEPCO’s Facebook page)
AMMAN — The draft budget of the National Electric Power Company estimated that the company's revenues will decline in 2022 by JD211.5 million, compared to the re-estimated amount for 2021 of JD29.07 million.اضافة اعلان

Accordingly, it is estimated that the deficit in 2022 will amount to JD409.2 million, compared to a re-estimated deficit for 2021 amounting to about JD201.4 million.

According to the draft budget figures, it is estimated that the total grants provided to the company will rise to JD205.9 million from the JD2.5 million estimated for 2021.

Concerning sales revenues, it is estimated that a decline will be noted valued at JD274.3 million from JD58.5 million re-estimated in 2021.

The draft budget also showed that the participants' estimated contributions will decline to JD7.2 million, compared to about JD9.7 million, the project will not include any revenues from fuel prices until 2024.

The draft showed that the total expenses of the company, in 2022 amounted to JD197.7 million, compared to JD172.3 million, re-estimated in 2021, with an increase of about 14.7percent, as it is estimated that current expenditures will rise by 6.7 percent to JD147.9 million, from JD138.6 million, re-estimated.

The estimated capital expenditures will also rise to JD49.8 million, compared to JD33.7 million re-reported for the current year, an increase of 47.7 percent.
The most important capital expenditure projects in 2021 included gas delivery with an estimated value of JD202,000, while no provisions were made for 2021, and the Green Energy Corridor Project with an estimated value of JD2.04 million, compared to a re-estimated value of JD6 million 2021.

The Audit Bureau recommended the National Electric Power Company adopt a long-term strategy for debt sustainability and a better plan for financing alternatives in a way that enables the company to continue.

The bureau requested that the company continue taking all measures to control spending in administrative and operational expenses and to correct the violations mentioned in the report.

The company’s annual report for 2020 indicated that it recorded a loss of JD61.7 million, compared to a profit of JD275,000 achieved by the company in 2019.

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