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Commission sets new electricity tariffs for 2017

Rates lowered for major consumers, but hikes expected in case oil prices reach $55 mark

By JT - Dec 08,2016 - Last updated at Dec 08,2016

AMMAN — The Energy and Minerals Regulatory Commission (EMRC) on Thursday announced that it has adopted a scenario for electricity tariffs that will see lower rates for major consumers, while it will increase the tariffs “for all sectors” in case the price of a crude oil barrel reaches $55 and above.

According to Reuters, Brent crude stood at $53.50 a barrel by 1400 GMT on Thursday, up by $0.50 from the day before.

Authorities started to phase out fuel subsidies in 2012, when the National Electric Power Company (NEPCO) incurred billions in losses after the Egyptian gas supplies came to a complete halt and the country had to rely on the costly heavy oil to generate electricity.   

Under the scenario, one of three considered by the agency, the price of each kWh for the mining and quarrying industry, for example, will be reduced from the current 264 fils for day energy to 237 fils, or by 10.2 per cent.  For night energy, the rate will go down from 197 to 170 fils, while no reduction will be applied to peak load, whose rate stands now at 298 fils. 

Other large industries, which are connected to 132 kilovolt high-voltage networks, will pay JD0.124 per kWh during daytime, down from JD0.133 per kWh, while the nighttime tariff remained unchanged at JD0.109 per kWh and the peak remained the same at 298 fils per kWh.

For regular subscribers, reduction will apply to top non-residential categories that consume 1000kWh a month and above, including mosques, hospitals, public buildings, charities and others; the price will go down from 266 fils per kWh to 256 fils. 

 New tariffs for commercial subscriptions whose monthly consumption ranges between 1 and 2,000kWh is set at JD0.120 per kWh, while consumers of over 2,000kWh will pay JD0.175 per kWh, according to EMRC.

Telecommunications companies whose monthly consumption ranges between 1 and 2,000kWh will pay JD0.230 per kWh, while companies using more than 2,000kWh will pay JD0.273 per kWh.

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