Abu Hammour: electricity company loss could be compensated through new tariffs
Finance Minister Mohammad Abu Hammour said that the national electricity company can offset the losses, expected to total 1.86 billion dinars from repeated cuts in Egyptian natural gas, through a new electricity tariff. He pointed out that the increase in tariffs can cover the losses over several years.
Abu Hammour explained to AmmanNet that the alternative developed by the Ministry of Energy includes finding substitutes to Egyptian natural gas, such as Iraq, to import large quantities of heavy oil, "Doing something like this takes time and would make the challenge even greater for Jordan."
The minister pointed out that the biggest challenge facing Jordan is the cut of Egyptian natural gas and crude oil prices, in addition to the rising price of food and wheat.
He said that the government has allocated funds of up to 350 million dinars in its budget in order to aid with the prices of bread, gas, and feed for cattle, however it did not allocate any money for the emergency conditions that Jordan is currently experiencing from the repeated natural gas shortages.
He added that the immediate solution is for the electricity company is to take out loans, ensure the government , and transfer the borrowed funds to the oil refinery. In turn, the refinery can resolve the liquidity problem by ensuring the Kingdom that they will receive the flow from electricity and oil derivatives.