Over the past five decades, the production of the electrical energy in the Hashemite Kingdom of Jordan has witnessed a quick development due to the economic and social development in the country, and the constant increase in the need for the electrical energy as a vital service to face this development. As a result to the increase in capital expenditure for building electrical power plants, and the need to keep up with progress at the international level in the field of electrical energy by means of allowing the private sector to invest in electricity projects (through privatization and the improvement of the technical, financial and administrative efficiency of such projects), the Jordanian government turned the Jordan Electricity Authority, in 1994, into the National Electric Power Company, a public shareholding company, fully owned by the government, as a first step towards privatization.

On 1/9/1996, the establishment of the National Electric Power Company was officially announced, as the legal and actual substitute of the National Electric Authority. This move was preceded by the issuance of the General Electricity Law no. (10) for the year 1996, in replacement of the General Electricity Law no. (16) for the year 1986. The new Electricity Law included the establishment of a monitoring body to regulate the electricity sector, set rules and regulations that govern the relations between the institutions of the sector; issue licenses for power generation, transport and distribution, revise tariffs, and set the regulations for monitoring the supply of electricity in terms of reliability, safety, environment protection, the consumer protection, etc.

Within the framework of the restructuring of the electricity sector, on 4/10/1997, the government decided to restructure the National Electric Power Company by separating the activities of power generation from those related to the transport and distribution of electricity, so that each sector might work according to trade principles. This was achieved by the establishment of an independent company for each activity, as follows:

The Central Electricity Generation Company:

During the initial phase preceding its privatization, this company remains fully owned by the government. It manages all activities related to electrical power generation and is owner of all general electrical power generation plants.

The Company’s Objectives:

a.        The company, within the framework of the main policy of the Jordanian government and the regulations in force, aims at generating electrical power in all parts of Jordan by means of using any of the primary, generated or regenerated sources of power and transferring it to the National Electric Power Company.

b.        In order to achieve its objectives the company may:

1.        Establish power generation plants necessary for its activities and increase its power generation capacity according to the general needs.

2.        Legally own land and buildings, as well as other assets required by the company in its projects; rent and rent out any movable or immovable property or any right and privilege that the company deems necessary, and appropriate for the purposes of its activities, especially land or any other asset, in accordance with its article of association; carry out maintenance work or modifications or alterations to the buildings where deemed necessary or appropriate for the purposes of the company.

3.        Conclude contracts necessary for the ownership of any electricity project, rent, rent out or exchange of any movable or immovable property. Own any intangible rights such as patents on inventions, concessions and trade marks, and the power to dispose of any of these rights or any part thereof in the way deemed suitable by the company, both inside Jordan and abroad.

4.        Employ employees and workers; conclude contracts with experts, specialists and contractors; pay salaries, wages, bonuses and compensations in exchange for previous or future services related to the activities of the company.

5.        Sell electrical energy to the National Electric Power Company or to any specialized company or party in Jordan, according to the prices and conditions that are suitable to the objectives of the company and in accordance with the laws and regulations that are in force in Jordan.

6.        Conclude contracts with any person, or see to any other arrangement related to profit sharing, common interests, cooperation in temporary commercial transactions, mutual privileges or other with any other person or company that carries out or intends to carry out an activity that the company itself is entitled to carry out and that has a direct benefit to the company, or loan money, recede contracts, helps any person or company, obtain shares or bonds of any company similar to this, sell them or reissue them with or without a guarantee or deal with them in any other way; borrow from local and foreign financial sources and present the necessary guarantees.

7.        Provide any services, consultation or study related to energy generation to other parties within Jordan and abroad.

8.        Establish the industries that are necessary for the production of electrical supplies and equipment of all kinds and engage in their trade.

9.        Contribute or participate in any company or project related to electrical power generation inside Jordan and abroad.

10.     Establish and use wired, wireless and portable control and communication networks in order to connect its offices, plants and projects, while coordinating and cooperating with the competent parties and companies inJordan, in accordance with the legal rules that are in force.