"Adama": a set of procedures that reduce electricity costs 20 %

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Amman- Tomorrow- The Edama Association for Energy, Environment and Water recommended regarding the file of the National Electricity Company with a set of procedures that help reduce approximately 20 % of the calculated electricity cost and encourage companies and institutions to register in the sales tax so that it can conduct a sales tax clearing on the bills.

The association, a Jordanian non -governmental and non -profit organization for business, says, “One of the reasons for the presence of deformation of electrical tariffs is to include the debts of the National Electricity Company in the cost of electricity pricing, while not allowing electricity -consuming companies to conduct a clearing on the sales tax that the government (or charges) is fulfilled.Previously from natural gas imports ”.

This comes at a time when the Energy and Minerals Regulatory Authority confirmed last week that it continues to prepare for the stage of implementing the expected new electrical tariff during the first third of the year 2022.

The Adamah Association proposed to transfer all the debts of the National Electricity Company to the public treasury, as half of it is in fact government debts and the other half is also guaranteed by the central government, and this turns the cost of financing to the Ministry of Finance instead of the company and these debts are based on political decisions in the Arab Spring. It is better to treat accounting as debtsOn the treasury, not the company, according to the view of the Adamah Association.

It also called for the cancellation of the sales tax on natural gas imported from the National Electricity Company and used to generate electricity if it exists.

In the third proposal, it called for the cancellation of the fuel price difference from the bills because it was increasing the cost of small bills by higher proportions than high bills, meaning that it harms the layers of limited income more than others..

It also indicated that the previous items may provide about 20 % of the calculated electricity cost, and therefore the electrical tariff in Jordan must be reduced to include a lighter rate of 20 % of the various segments, with the direction that the reduction is mainly in the segments with a very high pricing in relation to the real cost..

In the fifth item and for the amounts of the previous debt financing of 4750 million dinars, the association proposed imposing a general sales tax in relation to the usual on the electricity item that is consumed only for each electricity bill, provided that a general sales tax is subject to clearing at companies registered in the sales tax.

The last proposal, as you see, may achieve benefits, including reducing the cost of electricity to all economic sectors registered in the sales tax based on the actual costs of generating electricity and financing the service and paying the debts of the previous company from collecting sales tax on electricity bills.

Also, the tax will be paid by the real final consumer only, as the association believes that the poor family will pay its use of home electricity only, while the family will pay the most affordable as it is going to hotels, restaurants and stores.

This tax may also contribute to encouraging many companies and institutions to register for the sales tax so that the clearing can be made on the sales tax on electricity bills and reduces their cost and if they do not do their bills, it will remain as it is previously because the sales tax will be within the limits of the percentage of electricity price reduction.

Finally, the sales tax on electricity bills must be canceled or reduced when paying the entire debts of the National Electricity Company.

The association published a set of recommendations on the electricity sector in light of the talk about the new electrical tariff, which is proposed to be applied in the first quarter of next year.

The association's recommendations, in a position she issued yesterday in cooperation with a number of experts, included recommendations for the home and regular sector, the agricultural, industrial, hotel sector, the commercial sector, the armed forces, radio, television, private hospitals, banks, communications, ports, water pumping sector, road lighting and public squares.

First: Recommendations for the home and regular sector

A way to support or provide incentives must be found to subscribers who have installed photovoltaic cell systems, as these subscribers do not obtain support that will reduce the composition of photovoltaic systems for homes.

It is necessary to legislate the option of self -consumption for renewable energy owners, either by exporting the network and using the introduction of storage projects in the electrical system (batteries) or by setting a maximum amount of the amount of energy exporting the network and with a special tariff with the aim of limiting export during the peak period. This step will encourage the increase in investment opportunities in the subject of consumptionSelf -batteries and batteries in addition to motivating citizens towards renewable energy.

It also called for the acceleration in the process of installing smart meters and finding rapid payment incentives under the category of facilities for citizens, as well as a guarantee from the Energy and Mineral Sector Regulatory Authority not to re -calculate the insurances that are fulfilled on the subscriptions in the event of transferring the names of the subscribers' meters..

She suggested making cash support for subscribers who are not benefiting from photovoltaic cell systems and minimum slides, whether due to the material inability to install or the lack of sufficient spaces to install the system in addition to removing cash support from subscribers who have a photovoltaic cell system or installed a system at a later time.

She pointed to the unification of a tariff for home and usual subscribers who investigated the renewable energy with one way, as support must be directed to installing photovoltaic cell systems to develop this sector..

Second: The recommendations of the industrial sector

Adama suggested the unification of the tariff through a tripartite tariff during the day, evening, evening and night periods in order to encourage the peak period.

It called for a reduction in the consumption and cost of energy in the industrial sector, despite the removal of the maximum pregnancy tariff and the reduction of fils or two fils on the kilo of an hour, does not represent a great value that is beneficial to the industrial subscribers and does not affect an increase in the tariff income of the treasury.

It must also be associated with the cost reduction of clear goals for the transformation of the sector to renewable energy and attracting foreign investments with this new tariff, as Jordan is still far from competition with neighboring countries to attract foreign investments.

She drew attention to increasing dependence on renewable energy in industrial applications and working to impose a night and daytime tariff for the agricultural and industrial sectors for the purposes of stimulating consumption at the peak of production from renewable energy sources and linking electrical tariff to the geographical region in order to encourage investment in various regions, which allows the creation and development of new projects in areasVarious, which has the role in reducing pressure on the network and stimulating the economic situation.

A seminar associated with time was made through day day (8:00-16:00) and evening (16:00-24:00) and Al-Bilay (24: 00-8: 00) to encourage consumption outside peak times and encourage night consumption in lightDecreased night tariff value.

It may also positively affect the operational capacity of the National Electricity Company in terms of adopting the most efficient generation units and avoiding irregular operation at peak times..

The night tariff also suggested a decrease of 40 % of the final tariff to encourage night consumption and reduce day consumption during peak times.

It indicated that the mandatory installation of smart meters is beneficial to the subscriber from the motivational tariff so that it can be used immediately by covering the cost completely or part of the cost.

Third: Recommendations of agricultural sectors and hotels

The association proposed to unify the tariff through a tripartite tariff during the day, evening, evening and night periods in order to encourage the peak period.

Likewise, the agricultural sectors and hotels are considered a single identification sector, and definitions related to time were proposed through day, evening, evening and night periods to encourage consumption outside peak times and encourage night consumption and it is not expected that there will be a direct financial impact on subscribers, but it is expected that there will be a positive impact onThe operational plane of the National Electricity Company in terms of adopting the most efficient generation units and avoiding irorological operation, as well.

Fourth: Trade, the armed forces, television, hospitals, banks, communications and ports

The sectors of trade, the armed forces, radio, television, private hospitals, banks, communications and ports were considered service sectors, and they were unified, and you have known with a three -time tariff during the day, evening, evening and night periods, in order to encourage the avoidance of the peak period.

It is not expected that there will be a financial impact on the subscribers if they do well to choose consumption times, and on the contrary, this scenario provides an opportunity to reduce the bill on them, as wellEconomic.The unification of the tariff was proposed through a tripartite tariff during the day, evening, evening and night periods in order to encourage the peak period.

Fifth: The water pumping sector, road lighting and public squares

The tariff for the water pumping sectors, road lighting and public squares has been unified on the basis that they are governmental sectors that provide public service and with one level.

The procedures to be taken into account when adopting the new tariff and in a way that contributes to the recovery plan from the Korona pandemic of the vital sectors is the restructuring of the electrical tariff, taking into account the vital sectors and affected by the Koruna's pandem.

Likewise, taking into account the political and economic dimensions as a result of lifting support from non -Jordanians and taking the tourism sector into consideration, and the operational costs of the service and health sector and the sectors affected by the Koruna and encourage the electrification of transportation and transportation instead of using the means of transport dependent on fossil fuels, which helps not to go into investorsIn environmental dimensions.

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