About the Electricity Sector
Electricity is a fundamental pillar and an integral part of modern life. It is relied upon in all areas of life, which are indispensable in our daily lives, including household uses such as lighting, heating, and operating home electrical appliances, as well as other sectors like industry, telecommunications, and scientific fields. In addition to being a crucial element in driving the national economy, electricity is the main operator for factories. The development of the electricity sector reflects the progress and modernization of countries worldwide, as it is often measured by their level of electricity consumption. Based on the vision of the Hashemite Kingdom of Jordan to keep pace with developments in the sector, the country seeks to regulate the sector with a focus on balance among all stakeholders involved.
It also works on securing funding for projects and constantly searching for different funding opportunities by developing cooperative relationships with donor countries and organizations, as well as building relationships with new entities to provide financial and technical support for projects.
The electricity sector in the Kingdom has undergone structural changes since the issuance of the Temporary Electricity Law No. 64 of 2002. These changes align with privatization trends and the encouragement of both domestic and foreign investment in the sector to provide electricity to consumers in a sufficient, reliable, and affordable manner, while strengthening the role of the Energy and Minerals Regulatory Commission in developing the sector.
As a result of these changes, the electrical system in Jordan is now divided by activity into three distinct groups, as follows:
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Generation Activity.
Transmission Activity.
Distribution Activity.
The Energy and Minerals Regulatory Commission, under the Electricity Law, aims to achieve the following:
Ensure that projects operating in the sector comply with environmental preservation standards and public safety requirements applied in the Kingdom according to the prevailing legislation
Ensure that the electricity prices charged by licensed entities enable them to finance their activities and guarantee a reasonable return on their investments.
Ensure the provision of safe, stable, continuous, and high-quality services in the fields of electricity generation, transmission, distribution, and supply, and the operation of the transmission system.
Ensure that licensed entities provide sufficient electricity services to consumers
Safeguard the interests of consumers, provided they adhere to the terms of the electricity service provision issued by the licensed entities, subject to the approval of the Commission
Regulate the sector based on fairness and balance between the interests of consumers, licensees, investors, and any other relevant entities.
Encourage investment and competition in the sector, improve operational efficiency, and sell electricity at reasonable prices.
Maintain an effective sector structure and develop it to ensure and enhance its economic viability.
The Energy and Minerals Regulatory Commission undertakes the following tasks to achieve its goals:
1
Recommend to the Ministry of Energy and Mineral Resources the transition from a single-buyer model to a competitive sectoral structure in accordance with the provisions of the Electricity Law
2
Provide expertise and opinions on any matters related to the sector in a way that achieves the Commission’s objectives.
3
Collaborate with relevant entities to establish the necessary requirements for implementing environmental conditions that must be met by electrical facilities, and issue them in accordance with prevailing legislation.
4
Participate in the development of standard specifications for electrical equipment and installations in consultation with other relevant entities to be issued by the Jordan Standards and Metrology Organization.
5
Determine electricity tariffs, subscription fees, service charges, cost allowances, deposits, and the cost of connection services with the transmission and distribution systems.
6
Regulate generation, transmission, supply, and distribution, as well as operate the transmission system in the Kingdom to provide continuous and efficient electrical services to consumers in a manner that aligns with technological developments, in accordance with the provisions of Article (5) of the Electricity Law.
7
License individuals working in generation, transmission, supply, distribution, and the operation of the transmission system.
For the purposes of the Electricity Law, the Ministry of Energy and Mineral Resources undertakes the following tasks and powers:
Request from the licensed wholesale supplier, if necessary, to secure fuel for the benefit of electricity companies designated for privatization that are licensed for generation, either before or after privatization, or for independent power producers.
Take the necessary measures to secure additional sources for electricity generation in case of a continuous shortage of electricity or the expectation of such a shortage, if alternative means to address this shortage are not available.
Safeguard the interests of the Kingdom in dealings with other countries and regional and international organizations concerned with electricity matters, and represent the Kingdom before those entities.
Cooperate with other countries for the purposes of mutual electricity interconnection, buying and selling electricity, and conclude the necessary agreements for that with the approval of the Cabinet, and follow up on the implementation of contractual obligations with those countries.
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Prepare the general policy for the sector in accordance with the requirements of the Kingdom's economic and social development, present it to the Cabinet for approval, and follow up on its development.
To view the main operations or legislation and regulations of the electricity sector, please choose from the classification below
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Main Operations
To view the main operations, click here
Legislation and Regulations
To view the legislation and regulations, click here.