Joint House panel to meet PM over electricity hike

AMMAN — A recently formed joint Lower House committee will hold its first meeting next Monday with Prime Minister Abdullah Ensour to discuss the new electricity pricing mechanism.

The ministers of finance and energy, Umayya Toukan and Mohammad Hamed, will also be present at the meeting, the Jordan News Agency, Petra, reported.

Earlier this week, the Lower House formed a joint ad hoc panel representing the finance and energy committees to examine the new electricity tariffs in coordination with the government.

The decision was taken following a heated session held by the House to discuss the issue during which 127 MPs out of 150 aired their views on the new electricity tariffs, effective at the beginning of 2015.

The majority of speakers urged the government to go back on its decision, citing the considerable decline in international oil prices.

As tasked by an overwhelming majority, the joint panel is required to discuss the new electricity tariffs with the government and come up with recommendations within 10 days.

The increase in electricity prices ranges between 5 and 15 per cent, depending on consumption and sectors.

Parliamentary sources told The Jordan Times that meetings with the government had been scheduled to be held sooner but were delayed due to the blizzard the country recently witnessed.

Responding to MPs who called on the government to freeze the electricity pricing mechanism, Ensour said it cannot respond to the demand before discussing the electricity file with the joint panel.

Underlining the inseparability of the new electricity tariffs from economic reform, the premier pledged positive cooperation with the two parliamentary panels to reach consensus over the issue.

The hikes are part of a plan to gradually end subsidies and reduce the National Electric Power Company’s losses, which reached JD1.2 billion at the end of 2014, according to the Energy Ministry.

In 2013, the government increased prices of electricity for households and industries with monthly consumption of more than 600 and 10,000 kilowatt hours (kWh) respectively.

Electricity tariffs for households whose monthly consumption is 601kWh increased from JD0.141 to JD0.152 per kWh and will rise gradually until they reach JD0.188 by 2017.

Under the new pricing mechanism, a 25 per cent discount for security bodies, civil societies and municipalities was cancelled as well as a 75 per cent discount for workers at electricity companies.