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Electricity Sector

  

Electric power is an essential pillar and an integral part of contemporary modern life, as it is involved in all aspects of life from street lighting to houses and to all installations, as well as heating and cooling operations. It is also a main stimulator for the national economy. The consumption of electric power is an indicator of how developed a country is. Therefore, in light of one of Kingdom's main goals in keeping abreast of any developments in the sector, it seeks to regulate the sector on the basis of a balance between all stakeholders.

 Since the issuance of the General Electricity Law No. 64 of 2002, the electricity sector in the Kingdom has undergone changes to comply with privatization and stimulation of local & international investments to provide electricity to consumers adequately, reliably and at reasonable prices. The role of the Energy and Minerals Regulatory Commission in sector development as a result of these changes, the electrical system in Jordan has been broken down by activity into three detailed groups:

  • Generation activity
  • Transmission activity
  • Distribution activity

 

For the purposes of this Law, the Ministry of Energy and Mineral resources shall have the following functions and authorities:

  • Preparing the general policy of the sector, in accordance with the requirements of the Kingdom's economic and social development, and presenting it to the Council of Ministers for approval and further development.
  • Cooperation with other countries for purposes of electrical interconnection, the sale and purchase of electric power, the conclusion of the necessary agreements with the approval of the Council of Ministers, and the follow-up of the implementation of contractual obligations with those States.
  • To consider the interests of the Kingdom in other states and within regional and international organizations concerned with electric power matters, and to represent the kingdom in those bodies.
  • Take the necessary measures to secure additional sources of electricity generation in the event of a lack of power or expectation for the lack of power if there are no alternative measures to cover this deficiency.
  • Request the bulk supply licensee, if necessary, to secure fuel for the electricity companies, either before or after privatization or for independent generators.
  • Promote the use of renewable energy for the purposes of generation.

 

Under this Law, the Energy and Mineral Regulatory Commission (EMRC) aims to:

  • To maintain and develop an effective sector structure that ensures and enhances its economic viability.
  • Promote investment and competition in the sector and improve the efficiency of operation and sale of electricity at reasonable prices.
  • Ensure the provision of secure, stable, permanent and high-quality services in the generation, transmission, distribution and supply of electrical power and the operation of the transport system.
  • Ensure that enterprises operating in the sector comply with the standards of environmental protection and the public safety requirements applicable in the Kingdom under the legislation in force.
  • Ensure that electricity services are adequately provided to consumers by licensed licensees.
  • The assurance that the prices of the electricity required allow the licensee to carry on its activities, as well as ensure a reasonable rate of return on its investments.
  • Any sale to consumers of goods is regulated by the conditions for the electricity service issued by the licensee and associated with the approval of EMRC.
  • Regulation of the sector is based on the balance between the two consumers and the licensor, the investors and any other relevant actors.

 

In order to achieve its objectives, the Commission shall have the following functions:

  • Licensing of persons working in the delivery, transmission, supply, distribution and operation of the transmission system.
  • Regulating the generation, transmission supply, distribution and operation of the transmission system in the Kingdom to provide permanent electrical services and taking into account the provisions of article 5 of this law.
  • Define electricity tariffs and fees except for taxes and services and the costs of the distribution and the secretariats and the cost of delivery services with the transmission system and system.
  • Participation in the development of standard specifications for electrical appliances and installations in consultation with other stakeholders.
  • Engage with relevant stakeholders in the development of requirements for the implementation of environmental requirements in electrical installations and issue in accordance with the legislation in force.
  • To provide expertise and opinion on any subject related to the sector to achieve the objectives of the Commission.
  • Recommendation to the Ministry to move from a single buyer model to a competitive structural system of the sector in accordance with the provisions of this Law.

  

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