Incentive electricity tariffs during off-peak times for vital productive sectors
AMMAN — The Energy and Minerals Regulatory Commission (EMRC) on Tuesday announced the launch of the second phase of the time-of-use electricity tariff implementation, effective from the beginning of this year.
This phase will cover sectors including banks, private hospitals, water pumping, and hotels under a tiered system, the Jordan News Agency, Petra, reported.
This announcement was made during a collaborative meeting held on Tuesday, at the Ministry of Energy and Mineral Resources to detail the time-of-use electricity tariffs.
The meeting was attended by the Minister of Energy and Mineral Resources Saleh Kharabsheh and the Chairman of the Energy and Minerals Regulatory Commission Ziad Saida, along with representatives from the sectors affected by the new tariff system.
In a statement, the commission clarified that the purpose of this tariff is to create a regulatory framework that benefits all parties involved.
The goal is to reduce electricity bills, enhance grid stability, and improve overall efficiency.
The decision aligns with the country's Economic Modernization Vision, which supports productive and vital sectors, enhancing their competitiveness.
The sectors will benefit from a flexible and incentivized electricity tariff, offering reduced rates for energy consumption outside peak hours.
The tariff will take into account fluctuations in energy demand, enabling better load management throughout the day, unlike the fixed traditional tariff system.
The time-of-use tariff allows consumers to manage their electricity consumption patterns through effective load management, thereby benefiting from reduced rates during off-peak hours.
Sectors utilising energy storage systems for renewable energy can store excess power and use it during peak hours when prices are higher.
A smart meter is required to implement this system to track consumption periods accurately.
The tariff divides the day into three time periods based on actual operational system loads:
-Peak hours: 5 PM to 11 PM
-Partial peak hours: 2 PM to 5 PM and 11 PM to 5 AM
- Off-peak hours: 5 AM to 5 PM
The commission assured that sectors maintaining their current consumption patterns would see no changes to their bills, as the average rates remain consistent with those before the tariff's application.
Preliminary evaluations from the first phase, launched in July 2024, showed positive outcomes. Sectors such as electric vehicle charging, telecommunications, medium and large industries, and water pumping (optional participation) achieved noticeable reductions in electricity bills, depending on their consumption patterns.
The expected annual savings from implementing this tariff exceed JD5.3 million dinars if 25 per cent of the electrical load is shifted to off-peak hours across all included sectors.
The medium industrial and water pumping sectors are projected to save over JD2 million each.
Large industries and hotels are expected to save around JD350, 000 each, while private hospitals could save JD86, 000.
Additional savings include JD260, 000 for military subscriptions, over JD100, 000 for extractive industries and telecommunications, and JD50, 000 each for the banking sector and public electric vehicle charging.
The first phase of implementation of the time-based electricity tariffs was on July 2024, for the sectors of electric vehicle charging, telecommunications, medium and large industries, extractive industries, and water pumping (optional).
Under this system, electricity tariffs are segmented into three distinct periods: peak, partial peak, and off-peak, the Jordan News Agency, Petra, reported.
The EMRC's tariff structure is designed to encourage the transfer of electrical load to off-peak periods, where reduced rates are applied to encourage industrial sectors to capitalise on lower costs. This strategy aims to alleviate demand during peak hours and distribute consumption more evenly throughout the day.