Electricity, Energy and National Economy
 
The year 2007 was distinguished by a noticeable increase in the amount of energy consumption, with the maximum load reaching 2,130MW. The demand for electric energy grew at a rate of 14.5% during this year, due to the rapid economic development of Jordan, urban expansion and improvement in the social welfare level. Field studies have shown a change in customer consumption patterns with the annual rate of per capita consumption reaching 1,845 kWh and this expansion in the use of electric energy, including the wider use of air conditioning and heating, was powered by electricity rather than other energy sources.

The ERC was keen to ensure that companies operating in the electricity sector were keeping pace with this unprecedented growth efficiently. The National Electric Power Company - the operator of the integrated electric system in the Kingdom - was able to maintain the secure and economic operation of the electric system and the operation of generation units at their maximum efficiency limits and at minimum cost, through its monitoring and control centre. In addition, the interconnection with Egypt and Syria contributed significantly to supporting the secure performance of the Jordanian Electric system, under both normal operating conditions and emergency conditions.

In the field of generation, the contribution of generators operating on imported gas from Egypt increased to 80% which had a great impact on the reduction of power generation in the Kingdom, thereby increasing the savings of the national economy.

Close to 40% of all the power generation in Jordan was borne by gas turbines operating in the combined cycle mode. Despite the rise in the prices of crude oil, the electrical sector was able to maintain the selling price of electricity to the consumer at approximately the same price level of 2006.

In other areas, the construction of the new 380MW Amman East power plant began in February 2007 and the first stage of production is expected to start in August 2008. This plant is considered to be the first Independent Power Producer (IPP) and an assessment of the tender documents for the construction of the second IPP in the Al-Qatrana region is underway.

Several projects have been implemented, including the construction of new main sub-stations and the expansion of existing ones, as well as the enlargement of the transmission and distribution grids in the Kingdom, aiming to cope with the ever-growing demand for electricity.

The restructuring of the electrical sector has continued through the privatization of government owned companies, for example the privatization of the Central Electric Generation Company (CEGCO). The privatization of the Electric Distribution Company (EDCO) and the Irbid Distribution Electrical Company (IDECO) are currently in their final stages.

The ERC made several achievements in 2007. It prepared and approved the standard licence for generation; the System Operator licence in English; the licence for the wholesale supply; and the Licensing procedures document. The ERC was also able to gain approval for the update of the metering code with several amendments. The transmission performance and generation performance codes were also approved.

In the area of Customer Services, new ‘Instructions for Connection Charges’ were issued and the ’Table of Equipment and Material Charges’ was amended and has been implemented since January 2007. The total number of registered complaints reached 1,302 during 2007 and the ERC was able to address many of these as well as resolve a number of conflicts between the electric companies and the customers.

A number of tariff studies were undertaken which included the amendment of power factor limits; the use of double tariff metering; the return on capital paid to the Jordan Electric Power Company (JEPCO); the fiscal status of other companies; and the restructuring of the tariff model.

Due to the increase in investments in the electricity sector and in order to ensure the delivery of electricity to different parts of the Kingdom in a safe and stable manner and at competitive prices, the ERC organized a multi-media campaign aiming to raise awareness in Jordan to rationalize the consumption of electricity.

The ERC hosted the secretariat of the Arab Electricity Regulators Forum and participated in several international seminars for the regulators of electricity sectors, notably the seminar for the Clubhouse of Electric and Gas Regulators in the Mediterranean Region and the seminar for European Electricity Regulators.