Gov’t increases electricity prices

AMMAN — The government will increase electricity prices as of Sunday for all sectors and segments, excluding households that consume 300 kilowatt-hours (kWh) and less per month, an official said on Saturday.

Price of kWh will increase from 14 to 15 fils on all sectors as of April 1st until the end of the month, Farouq Hiyari, chief commissioner of the Energy and Minerals Regulatory Commission told The Jordan Times on Saturday.

The official said the increase is due to recent hikes in prices of crude oil over the past three months.

The average price of a crude oil barrel in, March, February and January rose to $66.78 per barrel, exceeding the $55 cap set by the government to keep electricity tariffs unchanged, Hiari said over the phone. 

Electricity prices are announced at the end of each month and are based on the average price of crude oil over the previous three months.

“Households that consume 300 kWh or less will not see any increase in their bills,” Hiari said.

The increase was seen as negative to the industrial sector.

 Jordan Chamber of Industry President Adnan AbulRagheb said the country’s industrial sector, which contributes some 25 per cent o the gross domestic product, cannot tolerate more hikes in prices.

“This is a negative move that will harm us,” the industrial sector in Jordan is already facing tough competition and rise in costs,” he told The Jordan Times on Saturday.

Jordanian industries are facing increased challenges and costs of production are rising, which will affect the competitiveness of the Jordanian products in markets abroad.

“There needs to be a solution as continued increases in prices are bad news for us,” he said.

The industrial sector in Jordan employs around 72,000 workers of whom around 18,000 are Jordanians.