As part of the government’s policy of reforming the Jordanian economy by restructuring economic corporations and amending legislations to attract investments, the government adopted a number of measures to restructure the electricity sector. The Jordan Electric Authority was turned into a trade-based company and was later divided into three specialized companies, one for electricity generation, one for transport, and one for distributing electricity to the southern parts of the Kingdom, the eastern region and the Jordan Valley. The Electricity Law was amended, allowing the private sector to invest in the electricity sector, and separated the sector’s various activities. The government was assigned to draw the general policy-making in the sector, while the implementation of this policy and the responsibility of monitoring and regulating the sector was handed to the Electricity Regulatory Commission. All this was done to provide secure and stable electricity services that are economically available to consumers. The task of investing in the sector and operating its components was assigned to the electricity companies.

To implement the government’s policy of allowing the private sector to take part in investments in the electricity sector, the government invited the private sector to invest in the construction of a plant for generating electricity with a capacity of 450 mega-watts utilizing the BOO principle. Two companies presented offers for constructing this plant, and the Ministry of Energy and Mineral Resources is negotiating with the company with the best offer to construct the plant in Khirbet Al Samra area.

The government also appointed a consulting company to study the possibility of privatizing the central Electricity Generating Company and the Electricity Distribution Company as well as selling the government’s share in the electricity company of the Governorate of Irbid. The consulting company commenced business in December 2001 and is expected to complete its mission in the first half of 2003. In line with the stipulations of the law, the Cabinet of Ministers decided to establish the Electricity Regulatory Commission on 15/1/2001. Its Board of Directors was formed and a General Manager was appointed to perform the tasks set by the law, and which are represented in the following:

1.        Setting the electricity tariff, the subscription fees, the services fees, the costs remuneration, and other services required for providing electricity.

2.        Licensing companies operating in the sector and monitoring the companies’ compliance with their licensing terms.

3.        Issuing the necessary instructions for the use of the national network.

4.        Accrediting electricity gauges and inspecting them to verify their validity, as well as examining and setting them.

5.        Working to resolve disputes among companies working in the sector and disputes between companies and consumers amicably, and in a manner that protects public interest.

6.        Providing advice and recommendations on any issue related to the electricity sector in line with the objectives and purposes of the Commission.

The Commission’s Achievements:

The year 2001 was the year of establishment.  Therefore, focus was set on processing regulations, documents and necessary issues to enable the Commission to function correctly. Three employees from electricity companies were brought to work with the General Manager under the supervision and guidance of the Board of Directors in order to establish the Commission. The Commission processed, in 2001, most of the required regulations and instructions. It has also licensed the companies and contributed to conducting the necessary studies of the sector.