Saturday, 29 December 2012

Government to Raise Electricity Prices | Impatient Bedouin

Today, an article appeared in the Jordan Times that announced (buried in the third paragraph) that the government intends to raise electricity prices. The article states that “The government’s programme includes comprehensive reforms in the electricity sector through further increases in electricity tariffs and diversification of energy sources.” Raising prices is easy, diversification is easier said than done. To this point, the only “diversification” that has been made recently is a commitment by Iraq to supply 60,000 tonnes of heavy fuel instead of 30,000 tonnes, as well as increased imports of Iraqi gas. The reality is that Jordan remains as dependent on Egyptian natural gas as ever, and the contract under which Egypt commits to supply Jordan with 240 million cubic feet of gas per day expires in 2019.

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