Al-Saket: High Energy Prices are A Hindrance to The Industry and The State of Production

23-Feb-2019

Eng. Musa Al-Saket, Vice-President of the Amman Chamber of Industry and head of the Amman-based industry campaign, stressed that the rise in energy prices is one of the most important challenges facing the Jordanian industrial sector and negatively affects its competitiveness in the local market and export markets and weakens its ability to contribute to transforming Jordan into the production country called by His Majesty The King. 

"The energy prices available to the Jordanian industrial sector have increased significantly compared to neighbouring countries," he said during his participation in the Forum on Renewable Energy Present and Future organized by the Association of Companies in the field of renewable energy under the patronage of His Excellency Minister of Energy and Mineral Resources Engineer Hala Zwati. , Especially the electricity prices, which weakened the competitiveness of Jordanian industrial products in the face of goods imported from countries with lower production costs due to energy. 

Al-Saket explained that energy is a major input for all industrial sectors. The industrial sector consumes about 17% of the energy consumed directly in the Kingdom, while the energy costs are about 35% on average for the industrial sector. 

On the item of fuel price difference on electricity bills, he pointed out that this item arrived in some months to more than 30% of the original tariff paid by the industrial sector, and linking the price of electricity to international oil prices, will make the industrial sector and competitiveness hostage to global oil prices and change, Stressing the need to exclude consumption of the industrial sector of this item. 

Al-Saket called on the government to cancel the maximum load tax during the peak period, as there are many factories that are heavy in consumption and difficult to stop working during the peak period, as the cost of total cessation of production during this period is more than the cost of payment of tariff of maximum load. 

With regard to renewable energy and its exploitation, Al-Saket explained that the industrial sector is one of the sectors most needed to resort to the exploitation of renewable energy sources to cover its energy needs, especially in light of the decrease in the cost of exploitation of solar energy in generating electricity. The monthly electricity bill fell to more than 70% Which has invested in the field of solar energy, but the limited capacity of the electricity distribution network prevents the trend of more factories towards renewable energy, calling for putting the industrial sector within the top priorities of the national plan in terms of solar energy under the suspension of The power of the projecting approvals for projects exceeding 1 MW. 

The Jordanian Chamber of Industry has established a specialized unit dealing with energy issues and environmental sustainability to assist the industrial establishments in Jordan to meet the challenges of energy through conducting many technical studies in the fields of energy and environment and organizing workshops in this field.









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