Electricity prices jump in Jordan

AMMAN - The Associated Press

AFP Photo

Jordan’s Cabinet has said it is raising electricity prices to cover high energy expenses caused by the interruption of Egyptian gas. The Cabinet said in a statement yesterday that hikes of up to 35 percent will go into effect tomorrow.

Households consuming less than 600 kilowatts -the category of low and middle income Jordanians- will not pay more. The disruption in Egyptian gas costs Jordan $7 million per day, pushing the budget deficit to a new record high of nearly $3 billion.

Since Egypt’s gas pipeline came under attack by militants last year, the supply fell to 10 percent of the 300 million cubic feet required to fuel Jordan’s power plants.

Jordan has since switched to more expensive fuel to generate electricity.