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Annual Report
National Electric Power CompanyThe Hashemite Kingdom of Jordan
NEPCO
Chairman and Board Members of the
National Electric Power Company are honoured
to submit the 49th Annual Report of the Year
2015 to His Majesty King Abdullah The SecondBin Al-Hussein..
His Majesty King Abdullah II Bin Al Hussein
H.R.H Crown PrinceHussein Bin Abdullah II
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Eng. Abde Al-Fattah Al-Daradkeh
Chairman Eng. Khaldoun Qutishat
Former Ministry of Energy
and Mineral Resources
Vice Chairman
Dr. Ghaleb Ma'abreh Former Secretary General Ministry of
Energy & Mineral Resources
Until 11/5/2016
Vice ChairmanEng. Amani Al-Azzam
Secretary General Ministry of Energy &
Mineral Resources
from 11/5/2016
Mr. Abdullah Kawaldah Former General Director ofAqaba Railway Corporation
Eng. Mouen Al-Sayegh General Director
Department of Land andSurvey
Eng. Ali Al-Bakhit Former Advisor of
Minister of Energy andMineral Resources
Eng. Mahmoud AlessCouncilor of Minister of Energy
and Mineral Resources
Dr. Mukhallad Omari
Secretary General of Jordan
Investment Commission
Board of Directors
Members
Managing Director
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Contents
Message from Managing Director 9National Electric Power Company (Short Brief, Vision, Mission & Organization Frame) 11Energy and Electricity in 2015 13
1- Energy Sector 141-1 Achievements in the year 2015 141-2 Demand for Primary Energy 141-3 The Cost of Primary Energy 15
2- Electricity Sector 152-1 Achievements in the year 2015 152-2 Statistics Figures for Electricity Sector In Jordan 16
2-2-1 Statistics and Performance Indicators 162-2-2 Electrical Energy Generated and Generation Capacity 172-2-3 Fuel Consumption 202-2-4 Demand for Electricity 212-2-5 Number of Consumers 232-2-6 Electrical Energy Losses 242-2-7 Eletricity Tariffs 25
NERCO,s Achievement & Performance Indicators 261- Statistical Data ( Significant Figures and Electrical Energy Purchases & Sales) 262- NEPCO’s Projects 28
A - Substation Projects (132,400) kV 28B - Transmission Lines Projects (132,400) kV 29C- Communication Projects 30D- Interconnection Projects 31
3- NERCO,s Duties and Activities 33First) Operation of the Jordanian Electric Power System 33Second) Planning Studies 33
A - Electricity Demand Forecast 33B – Implemented & under Construction Generation Projects 34
Third) Supporting Technical and Administrative Services 35A- Quality & Public Safety 35B- Electric Training Centre 36C- International Services and Investment 36D- Manpower & Training 37
Fourth) Financial Performance 38National Grid in Jordan›s Power System 39Financial Statements 40
AbbreviationsNEPCO National Electric Power Company QAIA Queen Alia International AirportCEGCO Central Electricity Generating Company SS SubstationEDCO Electricity Distribution Company G.D.P Gross Domestic ProductJEPCO Jordan Electric Power Company P.S Power StationIDECO Irbid District Electricity Company ATPS Aqaba Thermal Power StationSEPGCO Samra Electric Power Generating Company T.T.O.E. Thousand Ton of Oil EquivalentAES Jordan Amman East Power Plant G.T. Gas TurbineQEPCO Qatrana Electric Power Company OHL Overhead LineAAEPCO Amman-Asia Electric Generating Company p.a. per annumAES Levant AES Levant Holding BV Jordan psc H.F.O Heavy Fuel OilHTPS Hussein Thermal Power Station Kgoe Kilogram of oil equivalent
MeasuresJD Jordan Dinar (10^3 Fils)kV Kilovolt (10^3 Volt)kVA Kilovolt Ampere (10^3 Volt Ampere)MVA Mega volt Ampere (10^3 kVA)kW Kilowatt (10^3 Watt)MW Megawatt (10^6 Watt)kWh Kilowatt-hour (10^3 Watt-hour)MWh Megawatt-hour (10^6 Watt-hour)km Kilometer (10^3 Meter)GWh Gegawatt-hour (10^9 Watt-hour)
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A Message from Managing Director
The National Electric Power Company endeavours to continue its characterized path of achievements that are a direct result of implementing many vital and pilot projects. These projects are of high importance in enhancing the electricity sector in Jordan which led it to be of highly developed and of advanced levels of performance and success. This success was a true reflection of NEPCO’s commitment to achieve its vision and stated mission, its duties and responsibilities efficiently and effectively and with high professionalism depending on the company’s self capabilities and its staff and expertise. This fact contributed in achieving NEPCO’s vision that aim to enhance its achievements, and determine a high level of development and success.Meanwhile, we ask for the support of Almighty Allah to help us to achieve the company’s ambitious vision.The year 2015 witnessed the completion of many infrastructure projects of the energy sector; one of these projects is implementing the project of a port of the liquefied natural gas at Aqaba city. The commercial operation of this project commenced in July 2015. Nowadays, NEPCO imports the liquefied natural gas through this port in accordance with a five-year agreement held with the international “Shell” Company. This agreement secures (85%) of the Kingdom needs of the liquefied natural gas required for the electricity generation, while the rest of the quantity of the liquefied natural gas needed for the electricity generation, is covered by NEPCO through purchasing it from the spot market according to short-term contracts. In this regard, NEPCO imported (21) cargo of the liquefied natural gas during this year. In this field, NEPCO and the Ministry of Energy and Mineral Resources, as one side, have signed with the Jordanian Al-Fajr Company as the other side an agreement of interconnecting the project of the liquefied natural gas with the Arab Gas Pipe Line. This interconnection link was carried out through extending a pipe line of (800) m long and (24) inch diameter. Furthermore, an agreement was signed to transmit the liquefied natural gas through the Arab Gas Pipe Line for providing natural gas imported through the port of the liquefied natural gas, to electricity generation plants. Complying with the content of the Comprehensive National Energy Strategy that aims at raising the contribution of the renewable energy mix to (10%) by the year 2020, many vital projects in the field of the renewable energy has been started. To ensure this requirement, many agreements were signed by NEPCO during the year 2014 for constructing electricity generation projects by utilizing solar energy, most of these projects are located in Ma’an’s developmental zone.The first round of the direct offers regarding the electrical energy projects by utilizing the renewable energy resources (Solar Energy) has included (12) projects with a total generating capacity of about (200) MW. It is expected to operate these projects commercially in the second half of the year 2016, in addition to that, two projects were financed by the first Gulf grant, the first project is a wind project of capacity (80) MW located at Al-Hussein University, while the second one is a solar project of (103) MW located in Al-Quiera area. It is expected to complete and operate these projects also during the second half of the year 2016. Furthermore, the agreements of the second round of the solar energy projects were signed at the end of the year 2015. The number of these projects are four projects with a capacity of (50) MW each. These projects are located in the developmental zones of Al-Mafraq and Safawi. As for the wind energy projects, the Tafila wind Farm of capacity (117) MW was operated commercially during September of this year. This plant is considered one of the first round projects of the wind energy direct offers. Moreover, this round included signing two agreements, one of them was signed with a local company for constructing
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a wind plant of (83) MW capacity located in Al-Rajif area, while the other agreement was signed with KEPCO Company for constructing a wind plant of (90) MW capacity in Al-Fujaije area. Furthermore, two agreements will be signed during the year 2016 for developing wind energy projects within the second round of the direct offers. These wind energy projects will be interconnected with the national grid directly after completing the green corridor project. In this context, NEPCO continued to construct the green corridor project which will contribute in upgrading the national grid capacity to assimilate all the renewable energy projects in the Southern area of the Kingdom. It is expected to complete all the project components by the end of the year 2018.The company’s statistical technical indicators showed that the peak demand had a growth rate of (13.8%) in the year 2015 against a negative growth rate of (2.5%) in the year of 2014, while the peak demand reached (3300) MW in the year 2015 compared with (2900) MW in the year 2014.The electrical loss percentage of the national grid amounted to about (1.77%) in the year 2015 against (1.81%) in the year 2014, whereas the number of the energy outages reached to (41) interruptions during the year 2015 compared with (40) interruptions during the year 2014, whereas the average interruption duration during the years 2014 and 2015 amounted to (134) and (28) min/interruption respectively.These results are considered within the indicators that reflect the efficiency and high professionalism in the management and operation of the electric power system in addition to the utilization of the best equipment and modern apparatus used in constructing the components of the power system.Based on our firm keenness to enhance the company’s achievements, upgrading its efficiency and ranking it towards distinguished levels, the company continued its efforts to evolving and developing its human resources through training programs and courses held for all its staff in order to build up their capabilities, skills and experience needed to support and develop the company’s achievements and success process with constant paces and high professionalism that will help to maintaining high international levels of performance, so that the company becomes the best in the ranks of regional and international electricity companies. Finally, with all due respect and appreciation, I thank his Excellency the Chairman of the Board of Directors and the Board Members for their tireless efforts. I also thank all my colleagues, brothers and sisters, in all different NEPCO’s locations for their indispensable efforts and continuous distinguished hard work.Meanwhile, I continue to ask for the Almighty Allah to help us achieve the company’s respectable mission and its ambitious vision and to guide us to serve our country and its citizens under the leadership of his Majesty King Abdullah the Second Bin Al-Hussein (May Allah preserve and protect him).
Eng. Abde Al-Fattah Al-Daradkeh
Managing Director
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NATIONAL ELECTRIC POWER COMPANY
To elevate the Company’s status in all aspects to world standards at the same class of the best regional and international electric utilities.
The National Electric Power Company (NEPCO) was established in the 1st of September 1996 in accordance with the General Electricity Law number (10) for the year 1996. In compliance with this Law, the Jordan Electricity Authority which was established in accordance with the Law number (21) for the year 1967, was transferred to a Public Shareholding Company named as the National Electric Power Shareholding Company which is considered as the actual public legal successor for Jordan Electricity Authority, where all its shares are completely owned by the Jordanian Government.In 1999, the modified Electricity Law number (13) of the year 1999 has been issued. In compliance with this modified Law, the National Electric Power Company (the mother) has been divided into three electric companies of administrative and financial independence as from the beginning of the year 1999. These companies are: National Electric Power Company (NEPCO), Central Electricity Generation Company (CEGCO) and Electricity Distribution Company (EDCO).
Provision of secured electric energy; with high levels of reliability of the electric power system; and continuity of supply of electric energy demand at economical prices pursuant to international quality standards; meeting environmental requirements and good business practice in exchanging electric energy with neighboring countries; a consolidation of corporate governance at the company; achieving optimal investment in the infrastructure of the electric power transmission grid for the benefit of society; contribution in the technology transfer; attraction of national and international investments in electricity sector and creation of job opportunities for Jordanian professionals.
A SHORT BRIEF
Mission
Vision
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Organization Frame
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Energy and Electricity in 2015 (Reality and Achievements)
Jordan made significant efforts for seeking solutions for the energy and electricity crisis, which formed the biggest challenge to Jordan Economy, caused by the high increase of crude oil international prices specifically during the last five years, which was directly reflected on the cost of the primary energy consumed in Jordan due to the fact that Jordan imports from abroad about (97%) of its primary energy. The energy file in Jordan forms a heavy burden on the government and on the Jordan economy caused by the high cost of the primary energy bill, resulted from the increased dependence on the use of primary energy resources of high cost, such as heavy fuel oil and diesel oil in electricity generation to compensate for the outage of the least cost natural gas imported from Egypt. For facing these challenges imposed on the energy sector in Jordan, all possible alternatives and appropriate solutions on the short and long terms must be highlighted.Based on this vision, the Jordanian government has adopted a Comprehensive Strategy for Energy in Jordan. This strategy concentrated in general on the importance of utilizing the local energy resources and the renewable energy resources in Jordan for facing the future electricity demand in such a way to secure providing electrical energy to consumers at a least cost, high security of power supply, variety of resources and stability of prices. This approach will in turn reduce the dependency on the imported energy resources which will result in reducing the primary energy bill on the Jordan economy.In this context, the implementation of many projects for constructing electrical energy generating stations commenced during the year 2015. These stations utilize the renewable energy resources (solar and wind energy) and they are included within the first and the second rounds of direct offers of the electric energy projects, in addition to the existing projects which utilize the local energy resources (oil shale and Uranium raw material), pointing out that the agreement of constructing the first generating station fuelled by direct burning the oil shale was signed. Furthermore, all the required studies concerned with the construction of the first project of generating electricity utilizing the technology of the developed nuclear reactors are currently in progress. The most important achievements, in terms of the energy and electricity sectors, determined during the year 2015 were as follows:
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1- Energy Sector:1-1 Achievements in the Year 2015• Completing the construction of the liquefied natural gas port at Aqaba. His Majesty King Abdullah the Second
Bin Al-Hussein has inaugurated this port in July 2015. This project included constructing a specialized port for receiving the liquefied natural gas imported via Aqaba port by means of steam ships, so that this gas will be stored into floating tanks in steam ships which were rented for this purpose. In this context, an agreement of supplying Jordan with the liquefied gas was signed by the Jordanian Government represented by the National Electric Power Company from one side and the international SHELL Company from the other side. This agreement included that SHELL Company will supply Jordan with (150) million cubic metre of liquefied natural gas per day over the next five years.
• The interconnection project of the liquefied natural gas port (Al-Sheikh Sabah Al-Ahmad’s port) at Aqaba with the Arab gas pipeline was completed. The port commenced pumping the natural gas through the pipes of the Arab gas line. This was carried out after transforming the liquefied natural gas to the gaseous case or gasiform by means of the steam ship anchored to the port wharf. This ship has been rented by the Ministry of Energy and Mineral Resources for the purpose of storing the liquefied natural gas and transforming it to the gasiform. However, in the meantime, the Ministry of Energy and Mineral Resources as well as the National Electric Power Company as one side and the Jordanian Al-Fajr Company from the other side have already signed the project agreement concerned with the transmission of the natural gas via the Arab gas pipeline to all generating stations.
• Signing a memorandum of understanding by Jordan, Iraq and Egypt to support the cooperation among these countries in fields of Petroleum and natural gas through the project of Arab Oil line which extends from Basra in Iraq to Zarqa city in Jordan adjacent to the Saudi territories and from Zarka city to Aqaba and thereafter to Egypt according to the new path agreed upon in this memorandum of understanding. Works of implementing this project will start by mid of the year 2016. It is expected to complete this project during the year 2019, note that all geological surveys and technical studies concerned with this project were completed.
1-2 Demand for Primary EnergyThe demand for primary energy in 2015 was increased to about (8927) thousand tons of Oil equivalent, compared with (8461) thousand tons of Oil equivalent, with a growth rate of (5.5%) against (3.7%) in the year 2014.
The average per capita consumption of primary energy in the year 2015 was about (1280) Kg of Oil equivalent (Kgoe) against (1243) Kg of oil equivalent (Kgoe) in the year 2014.
Table (1) : The Demand for Primary Energy in Jordan
YearTotal
Primary Energy Demand (T.T.O.E)*
Growth Rate(%)
Primary Energy per Capita (kgoe)
2010 7357 (4.9) 12042011 7457 1.4 11932012 8206 10.0 12632013 8157 (0.6) 12252014 8461 3.7 12432015 8927** 5.5 1280
* It includes quantities of coal consumed by some industries since 2012 ** Preliminary
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1-3 The Cost of Primary EnergyTable (2): The Cost of Consumed Energy Relative to The National Economy
Cost of Primary Energy Relative toCost of Primary energy
(million JD)Year
GDP (%)Imports (%)Exports (%)*
13.923.658.526032010
19.629.979.340192011
21.131.592.746402012
17.126.080.740742013
17.627.583.044802014
9.517.550.425322015**
* Exports + (30%) Re-Export ** Preliminary
2- Electricity Sector:2-1 Achievements in the Year 2015• Implementing the project of adding a steam unit of capacity (145) MW at Al-Samra power station was completed.
This added steam unit will complete the combined cycle stage in the Al- Samra power station, thus the generating capacity of this stage becomes about (430) MW and the total generating capacity of this company becomes about (1175) MW.
• Amman East generation company (IPP4) which is owned by a consortium of the American Company (AES) and Japanese Company (Mitsue) commenced the implementation of an electricity generation project by utilizing the Solar Energy along with utilizing the conventional energy resources such as heavy fuel oil and diesel oil. This project produces about (100) MW of electrical power by the Solar cells. It is expected to operate this project during the second half of the year 2016.
• Atarat Energy Company commenced the works of constructing a first electrical energy generating station in Jordan utilizing the technology of direct burning of oil shale, but this was after completing all the financial procedures, preparation of designs and the required studies for the project.
• This project includes constructing a generating station through two stages with a capacity of (235) MW for each stage. It is expected to complete the project stages as planned so that the commercial operation of the first stage will start by mid of the year 2019 and the second stage will start by the end of the year 2019.
• The Cabinet agreed to proceed forward in implementing the fifth Independent Power Producer Project (IPP5) which includes rehabilitation of the Hussein Thermal Power Plant by constructing a new power generation plant at the same site of the Hussein thermal power plant with a capacity of about (480) MW. This new plant will be operated by the technology of the combined cycle burning natural gas as a base fuel and diesel oil as an alternative fuel.
• The final time table for the project and agreements that will be held between the National Electric Power Company and the Construction Company (ACWA) are being prepared. It is expected to operate the first stage of the project during the last quarter of the year 2017, and thereafter, the project will be completed as a combined cycle plant in the year 2018.
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• The Cabinet approved the establishment of a Nuclear Electric Power Company of Jordan in order to develop a project of a nuclear electric power plant in Jordan, and to prepare all technical and financial studies required for implementing such a project, which will include two nuclear reactors of capacity (1000) MW for each. The Russian technology for implementing this project was chosen based on a competitive tender. The outcome of the technical and financial evaluation of the received offers showed that the Russian offer was the best from the technical aspects and project financing. It is expected to operate the first reactor during the years (2024 – 2025).
• The project related to the Jordanian Wind Company for the Renewable Energy (JWPC) was completed and the commercial operation stage of the project commenced, thus it becomes the first project for generating electrical energy by wind energy of such capacity at the local level. The wind farm project implemented by (JWPC) in Tafila governorate includes (38) huge turbine of capacity (3) MW for each with a total generating capacity amounts to about (117) MW. It is worth mentioning that this project is one of the projects included in the first round of the direct offers of the electricity generation projects by utilizing the renewable energy resources (Solar energy and wind energy).
• In the same above context, an agreement of constructing a solar energy plant has been signed with Shams Ma’an Company, which is included within the first round of the electrical energy generation projects by solar energy. This project consists of constructing a generation plant of capacity (52.5) MW applicable to extension and operated by the technology of solar PV cells for electricity generation in the Ma’an developmental zone. It should be mentioned that the first round of the direct offers of the electricity generation projects by utilizing solar energy included (12) electricity generation projects utilizing solar energy with a total capacity of about (200) MW. These projects, in addition to other renewable energy projects within the second round which included signing four agreements related to solar energy projects with a capacity of (200) MW, i.e. (50) MW for each project, are expected when completed, to contribute in achieving the trends of the Comprehensive National Energy Strategy that aims at enhancing the contribution of such projects into the total energy mix in Jordan to reach to (10%) in the year 2020.
• The National Electric Power Company continued to work on constructing the green corridor project with the aim of assimilating (1200) MW of renewable energy from the projects of the first and second rounds implemented by the private sector in addition to the governmental projects in the same field, so as to generate electricity by utilizing solar energy and wind energy.
• The estimated cost of this project is about (96) million Jordan Dinar. It is expected to be in operation by the end of the year 2018.
2-2 Statistical Figures for Electricity Sector in Jordan
2-2-1 Statistics and Performance Indicators for Electricity sector in Jordan
Table (3): Significant Figures for Electricity Sector in Jordan
(%)20152014
13.834703050GeneratedPeak load (MW)13.733302930Sent-out
6.742664000Electricity sectorAvailable Capacity (MW)6.344554189Jordan
4.11901218269Generated Energy (GWh)4.91617815419Consumed Energy (GWh)
(21.9)5064Exported Energy ( GWh)38.9604435Imported Energy (GWh)
--14.8914.40Loss Percentage (%) *2.423202265Average(KWh) Consumed Per Capita3.539923856Electricity Fuel Consumption (T.T.O.E)5.519651862No. of Consumers (Thousands)1.681428016No. Of Employees in Electricity Companies
*Does not include power station internal consumption
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Table (4): Performance Indicators for Electricity Sector in Jordan
2014 2015 (%)
1.Manpower Indicators (Electricity Companies)
Annual Productivity (MWh Generated / Employee) 2286 2351 2.8Installed Capacity (MW / Employee) 0.50 0.52 4.0No. of consumers per Employee 232 232 --
2. Financial Indicators
Average Cost of kWh Sold (Fils/KWh)*
Total 156.60 99.29 (36.6)Fuel 139.54 71.72 (48.6)
Average price of Heavy Fuel Oil (JD/Ton) 453.7 292.7 (35.5)Average price of Diesel Oil (JD/m³) 630.8 435.7 (30.9)
3. Technical Indicators
Thermal Efficiency of Generating plants (%) 40.7 40.6 --
Availability of Generating Plants (%) 94.68 95.53 --
Availability of Transmission Lines (%) 99.67 99.82 --
* Final Energy Sold
2-2-2 Electrical Energy Generated and Generation Capacity The total generated and imported electrical energy in the Kingdom amounted to (19615) GWh in 2015 compared with (18704) GWh in 2014 representing an annual growth of (4.9%), whereas the total production of electrical energy in the kingdom was (19012) GWh, with a growth rate of (4.1%), while the imported electrical energy amounted to (604) GWh in 2015 against (435) GWh in 2014 with a growth rate of (38.8%).The Central Electricity Generating Company (CEGCO) contributed in 2015 by (33.6%) of the total electrical energy production in the kingdom, while Al-Samra Electric Power Generation Company (SEPGCO) contributed by (28.3%), Amman - East Generation Company in (Al-Manakher) area contributed by (9.6%), Qatrana Generation Company contributed by (12.0%), Amman Asia and AES LEVANT Generation Companies contributed by (7.4%), (5.9%) respectively, while the renewable energy and corporations contributed by (0.8%), (2.5%) of the total production respectively.The total generation capacity of the Jordanian Power System amounted to (4266) MW in 2015 compared with (4000) MW in 2014 with a growth rate of (6.7%).
Table (5): Available Capacity of Generating Plants (MW)
Year
Steam
Gas TurbinesCombined
Cycle
Diesel / (HFO +(N.GAS
Wind
Hydro
Biogas SolarTotal
ElectricitySector
Industrial Sector Total All)
(JordanDiesel N.Gas Steam GT/Diesel Diesel
2012 925 134 499.4 1737 -- 1.44 12 3.5 -- 3312 85 7.5 46.8 34522013 787 27 618 1737 -- 1.44 12 3.5 -- 3186 85 7.5 46.8 33252014 787 27 618 1737 814 1.44 12 3.5 -- 4000 135 7.5 46.8 41892015 787 27 332 2167 814 118.4 12 3.5 5 4266 135 7.5 46.8 4455
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Table (6): Electrical Energy Generated and Imported in Jordan (GWh)
2012 2013 2014 2015 (%)1. Electricity Sector 16355 16976 17886 18539.3 3.7
CEGCO 7789 7381 7964 6382.6 (19.9)SEPGCO 4595 4499 4521 5386.9 19.2AES Jordan PSC (IPP1) 1596 2640 1988 1825.9 (8.2)QEPCO (IPP2) 2353 2437 1520 2274.3 49.6AAEPCO (IPP3) -- -- 1140 1401.3 22.9AES Levant (IPP4) -- -- 730 1122.4 53.8Jordan Wind Company PSC -- -- -- 121.0 --Shamsuna Power Company -- -- -- 1.6 --King Talal Dam 16 13 17 16.9 (0.6)Jordan Biogas Company 6 6 6 6.4 6.7
2. Industrial Sector 241 286 383 472.3 23.3Potash Co. 3 79 101 109.3 8.2Indo-Jordan Chemicals Co. 62 64 71 68.6 (3.4)Refinery 72 51 66 65.2 (1.2) Fertilizer Co. 104 92 97 80.2 (17.3)Qatranna Cement Co. -- -- 48 148.9 210.2
3. Imported Energy 784 381 435 603.8 38.8Imported Energy from Egypt 784 381 435 603.8 38.8Total 17380 17643 18704 19615.4 4.9
Table (7): Electrical Energy Production by type of Generation in Jordan (GWh)
2012 2013 2014 2015 ) % ( 1. Electricity Sector 16355 16975 17886 18539.3 3.7
Steam Units 5256 5321 5491 4031.0 )26.6(Gas Turbines / Diesel 631 490 503 84.0 )83.3(Gas Turbines / Natural Gas 551 474 320 364.3 13.8Diesel Engines / HFO -- -- 1866 2424.0 29.9Diesel Engines / Natural Gas -- -- -- 94.8 --Diesel Engines / Diesel 1 1 16 4.8 )70.0(Hydro Units 61 55 58 52.5 )9.5(Wind Energy 3 3 2.4 123.1 5029.2Biogas 6 6 6 6.4 6.7
Combined Cycle 9846 10625 9624 11352.8 18.0Solar Energy -- -- -- 1.6 -2. Industrial Sector 241 286 383 472.3 23.3Steam Units 235 274 382 471.4 23.4Diesel Engines / Diesel 6 12 1 0.8 )20.0(Total 16596 17261 18269 19011.6 4.1
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Table (8): Electrical Energy Production by Type of Fuel in Jordan (GWh)
Heavy Fuel Oil
N. Gas Diesel OthersRenewable
EnergyTotal
CEGCO 3748.1 1725.3 871.6 -- 37.6 6382.6SEPGCO -- 3960.2 1426.7 -- -- 5386.9AES Jordan PSC (IPP1) -- 1675.5 150.4 -- -- 1825.9QEPCO (IPP2) -- 1755.1 519.2 -- -- 2274.3AAEPCO (IPP3) 1401.3 -- -- -- -- 1401.3AES Levant (IPP4) 1022.8 94.8 4.8 -- -- 1122.4Jordan Wind Company PSC -- -- -- -- 121 121.0Shamsuna Power Company -- -- -- -- 1.6 1.6Industrial Sector 471.5 -- 0.8 -- -- 472.3King Talal Dam -- -- -- -- 16.9 16.9Jordan Biogas Company -- -- -- -- 6.4 6.4Total 2015 6643.7 9210.9 2973.5 -- 183.5 19011.62014 7689.7 1296.3 9168.0 48.0 66.6 18268.62013 5595.6 4339.4 7263.2 -- 63.2 17261.42012 5490.9 3083.4 7951.7 -- 69.5 16595.52011 5637.8 3958.8 4984.3 -- 65.7 14646.62010 3653.5 10517.5 533.0 -- 72.8 14776.82009 1159.4 12985.7 57.9 -- 68.9 14271.9 2008 2128.0 11589.6 46.3 -- 74.2 13838.1 2007 2171.8 10714.7 40.5 -- 73.5 13000.5
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
طاقة مستوردة
طاقة متجددة
أخرى
ديزل
غاز طبيعي
وقود ثقيل
Electrical Energy Production by Type of Fuel in Jordanالطاقة الكهربائية اـولدة حسب نوع الوقود (ج.و.س)
Heavy Fuel Oil
N. Gas
Diesel
Others
Renewable Energy
GW
h
Imported Energy
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2-2-3 Fuel Consumption
Table (9): Fuel Consumption for Electricity Generation (T.T.O.E)
2012 2013 2014 2015 ) % (1. Electricity Sector 3479 3599 3726 3833.0 2.9
CEGCO 1805 1732 1808 1453.3 )19.6(SEPGCO 884 883 875 1080.5 23.5AES Jordan PSC (IPP1) 324 501 366 358.1 )2.2(QEPCO (IPP2) 466 483 310 451.2 45.5AAEPCO (IPP3) -- -- 225 276.7 23.0AES Levant (IPP4) -- -- 142 213.2 50.1
2.Industrial Companies with Self Generation 72 117 130 159.3 22.5Total 3551 3716 3856 3992.3 3.5All Jordan Fuel Consumption* 8206 8157 8461 8926.8 5.5
Electricity Fuel Consumption to Total FuelConsumption (%) 43.3 45.6 45.6 44.7 --
* It includes coal quantities consumed by some Industries since 2012.
Table (10): Electricity Fuel Consumption by Type of Fuel (T.T.O.E)
2012 2013 2014 2015 ) % (1. Electricity Sector 3479.0 3598.8 3726.1 3833.0 2.9
Heavy Fuel 1270.5 1287.1 1665.6 1334.2 )19.9(Natural Gas 676.1 905.4 301.9 1923.7 537.2Diesel 1532.4 1406.3 1758.6 575.1 )67.3(
2. Industrial Sector 71.6 116.7 129.6 159.3 22.9Heavy Fuel 69.9 112.7 122.8 159.0 29.5Diesel 1.7 4.0 0.3 0.3 0.0Others -- -- 6.5 -- --Total 3550.6 3715.5 3855.7 3992.3 3.5
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Table (11): Electrical Energy Consumption in Jordan (GWh)
2012 2013 2014 2015 ) % (1. EDCO’s Areas 2491.7 2612.0 2777.0 2924.0 5.32. JEPCO’s Areas 8472.7 8510.7 8759.1 9209.5 5.13. IDECO’s Areas 2181.1 2306.3 2520.7 2722.6 8.04. Industrial Companies 1054.4 1065.4 1294.6 1252.4 )3.3(
Refinery 106.9 98.5 98.4 104.7 6.4Jordan Cement Company / Al-Fuheis plant 122.0 49.8 23.6 17.1 )27.5(Jordan Cement Co. / Al-Rashadieh plant 41.7 98.3 125.1 108.8 )13.0(Al-Hadeetha Cement Company 34.6 86.0 111.3 100.7 )9.5(Al-Rajhi Cement Company 169.2 122.4 138.5 118.1 )14.7(Qatrana Cement Company - 63.8 133.4 148.4 11.2EL-Hasa Phosphate 42.4 43.2 39.6 46.4 17.2Sheidiyah Phosphate 65.4 49.0 42.9 51.5 20.0Potash Co. 337.1 326.5 378.6 390.4 3.1Fertilizer Company* 96.8 85.9 90.2 74.6 )17.3(
Indo-Jordan Chemicals Company 38.3 42.0 46.3 41.2 )11.0(Indo-Jordan Fertilizer Company -- -- 60.5 37.2 )38.5(AAEPCO (IPP3) -- -- 5.0 10.2 104.0AES Levant (IPP4) -- -- 1.2 2.7 125.0Jordan Wind Company PSC -- -- -- 0.4 --Shamsuna Power Company -- -- -- 0.002 --
5. Queen Alia Airport 76.2 69.7 66.8 68.2 2.16. Haraneh B.Station 0.5 0.2 0.8 0.7 )12.5(7. Others 0.1 0.1 0.2 0.2 0.0Total Consumption 14276.7 14564.4 15419.2 16177.6 4.9
* EDCO’s sales to Fertilizer are not included to avoid duplication
2-2-4 Demand for Electricity
The consumed electrical energy in the kingdom amounted (16177.6) GWh in 2015 compared with (15419.2) GWh in 2014, with an annual growth rate of (4.9%). The average consumption of electrical energy per capita amounted to (2320) kWh in 2015 against (2265) kWh in 2014 which represents a growth rate of (2.4%).
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Table (12): Electrical Energy Consumption by Sector Type (GWh)
Domestic & Government
Buildings*Industrial
Commercial& Hotels
Agriculture & Water
Pumping
Street Lighting
Total
EDCO 885 339 344 1283 73 2924JEPCO 4830.0 1968.6 1709.1 549.7 152.1 9209.5IDECO 1512.6 263.2 253.8 579.4 113.6 2722.6Industrial Companies -- 1252.4 -- -- -- 1252.4Other Companies -- -- 69.1 -- -- 69.1Total 2015 7227.6 3823.2 2376.0 2412.1 338.7 16177.62014 6583.4 3878.3 2357.7 2284.2 315.6 15419.22013 6265.4 3517.1 2414.9 2076.0 291.0 14564.42012 6126 3464 2427 1955 305 142772011 5667 3486 2173 1899 310 135352010 5225 3262 2187 1868 315 128572009 4888 3006 1980 1772 310 11956
2008 4459 3128 1925 1713 284 11509 2007 4017 2918 1757 1592 269 10553
* Include about (6%) Governmental + (1.5%) Others
2015201420132012
0
1000
2000
3000
4000
5000
6000
7000
8000
مباني سكنية وعامة
صناعي
تجاري وفنادق
زراعي وضخ مياه
إنارة شوارع
التوزيع القطاعي إلستهالك الطاقةElectrical Energy Consumption by Sector Type for the period (2012-2015) الكهربائية لألعوام (2015-2012)
GW
h
Domestic & Government Buildings
Industrial
Commercial & Hotels
Agriculture & Water Pumping
Street Lighting
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2-2-5 Number of Consumers
Table (13): Number of Consumers in Jordan (Thousands)
2012 2013 2014 2015 ) % (
NEPCO * 0.017 0.018 0.018 0.020 11.1
EDCO 199.3 209.6 218.8 227.6 4.0
JEPCO 1071.6 1122.3 1200.3 1265.9 5.5
IDECO 383.4 412.5 442.4 471.0 6.5
Total 1654.3 1744.4 1861.5 1964.5 5.5
* This represents the distribution companies and other large consumers.
Table (14): Number of Consumers by Type of Consumption in Jordan for the Year 2015
Domestic & Government
BuildingsIndustrial
Commercial& Hotels
Agriculture & Water
Pumping
Street Lighting
Bulk Sales
Total
1. NEPCO’s Areas -- 12 5 -- -- 3 20
2. EDCO’s Areas 191589 1922 27252 5236 1611 -- 227610
3. JEPCO’s Areas 1101451 11646 144311 1899 6583 -- 1265890
4. IDECO’s Areas 417289 4442 44209 2248 2849 -- 471037
Total 1710329 18022 215777 9383 11043 3 1964557
% 2.00إنـــارة شـــوارع
% 44.68
مباني ســـكنية وعامة
% 14.23زراعي وضخ مياه
% 14.69تجاري وفنادق
% 23.63صناعي
التوزيع القطاعي إلستهالك الطاقة Electrical Energy Consumption in the kingdom by Type for the year 2015الكهربائية ـ اـملكة لعام 2015
Domestic & Government
Buildings
Industrial
Commercial & Hotels
Agriculture & Water Pumping Street Lighting
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2-2-6 Electrical Energy Losses
Table (15): Electrical Losses by Sector Type
2012 2013 2014 2015
1.Generation Losses *
Generated Energy 16332 16957 17863 18516Sent Out Energy 15713 16341 17231 17945Losses (%) 3.79 3.63 3.54 3.08
2. Transmission Losses
Purchased Energy 16470 16719 17691 18541Sold Energy / Bulk 16123 16372 17370 18213Losses (%) 2.11 2.08 1.81 1.77
3. Distribution Losses
Purchased Energy 15113 15445 16305 17282Sold Energy/Retail 13146 13429 14057 14856Losses (%) 13.02 13.05 13.79 14.04
4. Total Energy losses in Electricity Sector**
Sent Out Energy and Imported Energy 16497 16722 17666 18548Consumed and Exported Energy 14155 14356 15121 15787Losses (%) 14.20 14.15 14.41 14.89
* Includes the losses in the Electricity Generation Company ** Not Include Aux
% 3.08
% 1.77
% 14.04
% 3.54% 3.63% 3.79
% 2.11
% 13.02
2012 2013 2014 2015
% 2.08
% 13.05
% 1.81
% 13.79
الطاقة المفقودة في محطات التوليد
الطاقة الكهربائية اـفقودة (٪)
الطاقة المفقودة في خطوط النقل الطاقة المفقودة في شبكات التوزيع
Electrical Energy Losses (%)
Distribution LossesTransmission LossesPower station Aux. Consumption
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2-2-7 Electricity Tariffs
Table (16): Electricity Tariff in Jordan (from 01/01/2016)1.Bulk Supply Tariff Fifth Block : from 601-750 kWh/Month 169
A- JEPCO Sixth Block : from 751-1000 kWh/Month 190
Peak Load (JD/kW/ Month) 2.98 Seventh Block : more than 1000 kWh/Month 266
Day Energy (Fils/kWh) 76.97 C- Flat Rate Tariff for TV & Broadcasting Stations (Fils/kWh) 173
Night Energy (Fils/kWh) 66.92 D- Commercial Sector (Fils/kWh)
B- EDCO First Block : from 1-2000 kWh/Month 129
Peak Load (JD/kW/ Month) 2.98 Second Block : more than 2000 kWh/Month 181
Day Energy (Fils/kWh) 72.46 E- Flat Rate Tariff for Banking Sector (Fils/kWh) 285
Night Energy (Fils/kWh) 62.39 F- Telecommunication Sector (Fils/kWh)
C- IDECO First Block : from 1-2000 kWh/Month 257
Peak Load (JD/kW/ Month) 2.98 Second Block : more than 2000 kWh/Month 300
Day Energy (Fils/kWh) 62.79 G- Small Industries (Fils/kWh)
Night Energy (Fils/kWh) 52.74 First Block : from 1-10000 kWh/Month 71
D- Large Industries Second Block : more than 10000 kWh/Month 81
1- Mining & Quarrying Industry H- Medium Industries (Fils/kWh)
Peak Load (JD/kW/ Month) 2.98 Peak Load (JD/kW/ Month) 3.79
Day Energy (Fils/kWh) 264 Day Energy (Fils/kWh) 89
Night Energy (Fils/kWh) 197 Night Energy (Fils/kWh) 75
2- Others I- Flat Rate Tariff for Agriculture (Fils/kWh) 60
Peak Load (JD/kW/ Month) 2.98 J- Agriculture (Fils/kWh)*
Day Energy (Fils/kWh) 133 Peak Load (JD/kW/ Month) 3.79
Night Energy (Fils/kWh) 109 Day Energy (Fils/kWh) 59
2. Retail Tariff Night Energy (Fils/kWh) 49
A- Household (Fils/kWh) K- Flat Rate Tariff for Water Pumping (Fils/kWh) 94
First Block : from 1-160 kWh/Month 33 L- Flat Rate Tariff for Hotels (Fils/kWh) 181
Second Block : from 161-300 kWh/Month 72 M- Hotels (Fils/kWh)**
Third Block : from 301-500 kWh/Month 86 Peak Load (JD/kW/ Month) 3.79
Fourth Block : from 501-600 kWh/Month 114 Day Energy (Fils/kWh) 164
Fifth Block : from 601-750 kWh/Month 158 Night Energy (Fils/kWh) 145
Sixth Block : from 751-1000 kWh/Month 188 N- Streets Lighting (Fils/kWh) 114
Seventh Block : more than 1000 kWh/Month 265 O- Army Forces (Fils/kWh) 146
B- Domestic (Fils/kWh) P- Port Corporation (Fils/kWh) 159
First Block : from 1-160 kWh/Month 42 Q- Agriculture / Commercial (Fils/kWh)60
129
Second Block : from 161-300 kWh/Month 92 Notice Monthly Minimum Charge
Third Block : from 301-500 kWh/Month 109 A- Domestic (JD/Month) 1.0
Fourth Block : from 501-600 kWh/Month 145 B- Other Consumers (JD/Month) 1.25
* The three part tariff will applied compulsory on agricultural consumers whose connected to the network from 14/3/2008, and Maximum load exceeding 100 MVA
** The medium industrial tariff will applied on Hotels sector from 1/5/2015
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NEPCO’s Achievements and Performance Indicators:1- NEPCO’s Statistical Data
1-1 Significant Statistics and Performance Indicators
The NEPCO’s statistical indicators in the year 2015 showed an increase in the transforming capacity of the main substations as well as in the lengths of the national grid. In this regard, NEPCO constructed new substations, expanded existing substations, and implemented new transmission lines in order to face the rising demand for electricity in Jordan. Furthermore, the NEPCO’s technical performance indicators showed a reduction in the electrical loss percentage across the national transmission grid.
Table (17): NEPCO’s Significant Figures
2014 2015 ) % (
Peak load for Interconnected System (MW)Generated 3020 3435 13.7Sent-out 2900 3300 13.8
Available Capacity for Electricity Sector (MW) Sent-out 4000 4266 6.7Purchased Electrical energy (GWh) 17691 18541 4.8Sold Electrical Energy (GWh) 17370 18213 4.9Transmission Losses (%) 1.81 1.77 --National Grid Transmission Lines 132 kV and above (Km-Circuit) 4520 4549 0.6Substations Installed Capacities 132/33kV (MVA) 7865 8665 10.2Substations Installed Capacities 400/132/33kV (MVA) 3760 3760 --No. of Employees 1410 1419 0.6NEPCO’s Fixed Assets (Million JD) 533 540 1.3
Table (18): NEPCO’s Performance Indicators
2014 2015 ) % (1. Manpower Indicators
Annual Productivity (GWh Sold/Employee) 12.3 12.8 4.1Transforming Installed Capacity (MVA/Employee) 8.5 9.0 5.9
2. Financial IndicatorTotal Cost of kWh sold (Fils/kWh) 149.14 96.15 )35.5(
Cost of Energy Purchased (Fils/kWh) sold 139.59 86.06 )38.3(Other Costs (Fils/kWh) sold 9.55 10.09 5.7
Revenues (Fils/kWh) 80.11 82.72 3.3Current Ratio (Times) 0.09 0.12 33.3Net Profit (Loss) Ratio (%) )78.69( )8.67( --Total Debt to Total Assets Ratio (%) 231.8 28.8
3. Technical IndicatorTransmission Losses (%) 1.81 1.77 --Availability of National Transmission Grid (%) 99.67 99.82 --Number of Interruptions 40 41 2.5Unsupplied Energy (MWh) 1703 4186 145.8Average Interruption Duration (Min/ Interruption) 28 134 378.6Average Unsupplied Energy (MWh/ Interruption) 43 102 137.2Interruption Duration (Hour) 18 91 405.6
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1-2 Electrical Energy Purchases
Table (19): NEPCO’s Electric Power Purchases (GWh)
2012 2013 2014 2015 ) % (A- CEGCO 7306.0 6910.1 7497.6 6016.1 )19.8(B- SEPGCO 4490.2 4426.2 4407.8 5271.6 19.6C- AES Jordan PSC (IPP1) 1561.3 2590.6 1945.7 1792.2 )7.9(D- QEPCO (IPP2) 2311.7 2396.5 1483.9 2237.8 50.8E- AAEPCO (IPP3) -- -- 1127.9 1377.6 22.1F- AES Levant (IPP4) -- -- 774.0 1100.2 42.1G- Jordan Wind Company PSC -- -- -- 121.0 --H- Shamsuna Power Company -- -- -- 0.74 --I- Others 800.7 395.1 453.6 623.9 37.5
King Talal Dam 16.1 13.4 16.6 16.9 1.8Indo-Jordan Chemicals Co. 0.3 0.6 2.1 3.2 52.4Imported Energy from Egypt 784.3 381.1 434.9 603.8 38.8
Total Energy Purchased 16469.9 16718.5 17690.5 18541.1 4.8
1-3 Electrical Energy SalesTable (20): NEPCO’s Electrical Energy Sales (GWh)
2012 2013 2014 2015 ) % (A. Distribution Companies 15113.1 15445.2 16304.9 17282.1 6.0
JEPCO 9813.3 9871.0 10304.5 10880.1 5.6EDCO 2845.8 2979.3 3160.0 3337.8 5.6IDECO 2454.0 2594.9 2840.4 3064.2 7.9
B. Large Consumers 906.3 868.4 1000.8 881.1 )12.0(Refinery Co. 40.0 51.1 37.2 44.1 18.5Jordan Cement Co./Al Fuhies Plant 122.0 49.8 23.6 17.1 )27.5(Jordan Cement Co./Al Rashadiyeh Plant 41.7 98.3 125.1 108.8 )13.0(Al-Rajhi Cement Co. 169.2 122.4 138.5 118.1 )14.7(Al-Hadeetha Cement Co. 34.6 86.0 111.3 100.7 )9.5(Qatranna Cement Co. -- 63.8 88.7 9.9 )88.8(Potash Co. 334.4 253.2 284.5 288.8 1.5El-Hasa Phosphate Co. 42.4 43.2 39.6 46.4 17.2Sheidiyah Phosphate Co. 45.3 29.1 18.0 27.8 54.4QAIA 76.2 69.7 66.8 68.2 2.1Indo-Jordan Fertilizer Co. -- 1.6 60.5 37.2 )38.5(Haraneh (New Broadcasting) 0.5 0.2 0.8 0.7 )12.5(AAEPCO (IPP3) -- -- 5.0 10.2 104.0AES Levant (IPP4) -- -- 1.2 2.7 125.0Jordan Wind Company PSC -- -- -- 0.4 --Shamsuna Power Company -- -- -- 0.002 --
C. Exported Energy 103.5 58.6 63.8 49.7 )22.1(Egypt 14.5 10.8 22.8 3.0 )86.8(Jerusalem Co. (Jericho) 82.3 41.4 34.3 41.4 20.7Iraqi Border (Trabeel) 6.7 6.4 6.7 5.3 )20.9(
D. Other 0.1 0.2 0.2 0.2 0.0Total 16123.0 16372.4 17369.7 18213.1 4.9
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Table (22): Projects of Constructing New SubstationsSubstation Capacity (MVA) Operation Date
Al- Tafileh 132/33 kV Switching Station -- First Quarter / 2015Al-Hizam 132/33 kV S/S 3x80 Fourth Quarter / 2015New Bayader 132/33 kV S/S 2x80 Fourth Quarter / 2015Ma›an 132/33 kV S/S / Solar 3x80 Fourth Quarter / 2015Al-Hussein University S/S / Wind 2x80 Fourth Quarter / 2015Al-Qweirah S/S / Solar 2x80 Fourth Quarter / 2016Al- Fujaije Switching Station /Wind -- Third Quarter/2016Al-Rajif Switching Station / Wind -- Third Quarter/2016Al- Safawih 132/33 kV Switching Station -- Third Quarter/2016Al- Tafileh 132/33 kV S/S 2x80 First half/2017
Table (23): Main Substations Installed Capacity (MVA):
Year 400/132/33 132/132 132/33 132/6 132/112012 3760 100 6909 155 252013 3760 100 7444 155 252014 3760 100 7865 155 252015 3760 100 8665 155 25
2- NEPCO’s Projects The company was able in the year 2015 to accomplish many projects which aim, in its entirety to enhance and develop the national grid in addition to commencing the implementation of another number of projects which may be completed in the coming years. The company’s projects can be summarized as follows:First) Substations Projects:-A) 400 kV Substations Projects:-
• Construction of Amman West 400/132 kV substation by adding two 400/132 kV transformers with a total capacity of (800) MVA, nine (400) kV transformer bays and eleven 132 kV bays. It is expected to complete and operate the project in the year 2017.
• Ma’an Substation 400/132/33 kV (Green Corridor Project), by adding two 400/132 transformers with a capacity of (800) MVA, thirteen 400 kV bays, eleven 132 kV bays. It is expected to complete and operate the project in the year 2018.
B) 132 kV Substations Projects:-
Table (21): Projects of Expanding Existing Substations
Substation Added Capacity (MVA) Operation Date
Replacement of Irbid Substation 1x80* Fourth Quarter / 2015
Replacement of Al-Risha Substation -- Fourth Quarter / 2015
Replacement of Al-Azraq Substation -- Fourth Quarter / 2016* A (80) MVA transformer was added instead of (2x30) MVA transformers
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Second) 400, 132 kV Transmission Lines Projects:-
Table (24): The Completed and Under-construction Projects
Project Circuit kVLength of the
Added line (Km.Circuit)
CompletionDate
Connection of Tafileh Wind Farm Double Circuit 132 1.6 First Quarter / 2015
Connection of Al-Hussein University Wind Farm Double Circuit 132 5 First Quarter / 2015
Connection of Ma›an Solar Plant Double Circuit 132 2 First Quarter / 2015
Connection of Al-Qweirah Solar Plant Double Circuit 132 3.7 First Quarter / 2015
Connection of New Zarqa Substation Double Circuit 132 0.7 Second Quarter / 2015
Connection of Al-Hizam S/S Quadratic Circuit 132 0.82 Second Quarter / 2015
Connection of Al-Qatranah with Amman West Plant S/S Double Circuit 400 110 Fourth Quarter / 2017
Connection of Amman West S/S with Al-Samra S/S Double Circuit 400 75 Third Quarter / 2017
Table (25): Transmission Line Length (km - Circuit)
Year 400 kV 230 kV
132 kV66 kV*
Overhead Lines Underground Cables
2012 904 17 3184 97 172013 924 17 3425 97 172014 924 17 3482 97 172015 924 17 3511 97 17
* Converted to Work on 33 kV
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.Third) The Telecommunication and Control Projects:-The National Electric Power Company implemented many communication and control projects, during the year 2015. The most significant projects are the following:The Telecommunication projects:
- Issuing and awarding the tender No. 2/2015 of telephone switchboards type VO/IP in order to be used in NEPCO’s different sites in addition to supporting the existing system.
- Importing transmittal equipments of optical fibres (SDH-STM16, TEJAS) as an attachment to the tender 65/2011 concerned with the transmittal optical fibres (SDH-STM-16) in order to be used in the new substations and the company’s different sites in addition to supporting the existing system.
- Preparing the technical specifications required for issuing a tender for the digital interchangeable protection equipment in order to be used in the new substations and the company’s different sites in addition to supporting the existing system.
- Preparing the technical specifications required for issuing a tender for power supply equipment with direct voltage VDC48 in order to be used in the new substations and the company’s different sites in addition to supporting the existing system.
- Preparing the technical specifications required for issuing the digital carrier communication equipment in order to be used in the company’s different sites in addition to supporting the existing system.
- Preparing the technical specifications required for issuing a tender of outdoor coupling equipment in order to be used in the new substations and the company’s different sites.
- Installing the telecommunication equipment (the digital carrier (OPD-1), (SDH-TEJAS-STM-16) in Al-Tafila new wind substation in order to be installed within the communication network related to the substations.
- Installing the power supply equipment with direct voltage (VDC48) in new wind plants at Tafila, new solar plants at Ma’an and the new wind Farm at Al-Hussein University.
- Installing the communication equipment (Digital Carrier (OPU + OPD-1) and (SDH-TEJAS-STM-16)) in the new solar plant at Ma’an, in order to be included within the communication network related to the substations.
- Installing new communication equipment (SDH-TEJAS-STM-16) in Al-Fuheis substation after the arrival of the fibre optic network to this substation in order to be included within the communication network related to the substations in addition to enhancing the control and communication system for this plant.
- Installing new communication equipment (SDH-TEJAS-STM-4) at the Hashemite Royal Court in order to support the existing communication system and offered service to this Royal Court.
- Installing new communication equipment (SDH-TEJAS-STM-16) at Ma’an substation in order to enhance the communication network and improve its performance.
- Installing communication equipment (Digital Carrier OPU) at Safawi and Al-Azraq substations for the purpose of supporting the control system and the interchangeable protection system with new channels.
- Renewing the agreement of Al-Samra Generation Company by agreeing to increase the offered speeds from the communication network belonging to the National Electric Power Company starting from the Al-Samra Company main building towards the National Information Centre as well as Al-Samra power station.
- Following up the maintenance works of the fibre optic network related to the official Jordanian universities at Balqa (Salt), Mu’ata, Al-Hussein and Al-Albayt universities.
- Following up the maintenance works of the fibre optic network related to the schools network (Ministry of Communication). However, there is a tendency to prepare a new agreement between the company and the Ministry.
Control Projects:- Design, install and test new substations in cooperation with the supervisory control centre for each of the following projects:- Expansion of Ma’an 132 kV, Al-Rashadiya 132 kV, Al-Tafila wind plant 132 kV, Al-Samra generation plant 132 kV, Al-Hezam 132
kV and Al-Bayader 132 kV.- Connecting the renewable energy projects with the supervisory control centre in each of the following power stations:
- Al-Tafila wind Farm- Al-Azraq solar plant - Shamsona Solar Farm at Aqaba.
- Updating and replacing the old control equipment (RTU) at Al-Azraq and at Al-Risha substations.- Developing the communication system between the control equipments in the substations and the supervisory control centre
by utilizing the protocol of communication (IEC 60870-5-104).- Evaluating the present automation systems in six substations in cooperation with the specialized companies.- Establishing data bases and single line diagrams for the new substations, expansions and renewable energy projects.- Preparing specifications and requirements of control systems (SCADA) for all renewable energy projects and new generation projects.
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Fou
rth
) Th
e El
ectr
ical
Inte
rco
nn
ecti
on
Pro
ject
s:-
Tab
le (2
6): E
lect
rical
Inte
rcon
nect
ion
Proj
ects
Proj
ect
Proj
ect S
tatu
sTe
chni
cal S
peci
ficat
ions
Tota
l Ele
ctric
al E
nerg
y Ex
chan
ge D
urin
g th
e Ye
ar
2015
(Gw
h)
Capa
city
(MW
)Le
ngth
(km
)Vo
ltage
(kV)
The
Eigh
th E
lect
rical
Inte
rcon
nect
ion:
-Im
port
edEx
port
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e Egy
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-Jord
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Elec
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l Inte
rconn
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n (S
ub-
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was
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and
the
Egyp
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side
s fo
r the
yea
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6 in
Janu
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/ 201
5 40
013
550
Jord
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450
The J
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Dur
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year
201
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the
curr
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400
147
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(--
--Th
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n (th
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----
The S
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gypt
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ibya
n Ele
ctric
al In
terco
nnec
tion
220
163
)170
-500
(--
--
The S
yrian
-Turk
ish El
ectri
cal In
terco
nnec
tion
All r
elat
ed w
orks
to th
e Sy
rian-
Turk
ish
inte
rcon
-ne
ctio
n lin
e 40
0 kV
wer
e co
mpl
eted
(w
ithin
th
e tw
o co
untr
ies
terr
itorie
s) w
here
as th
is li
ne
was
est
ablis
hed
in t
he y
ear
2003
, but
thi
s lin
e is
cur
rent
ly w
orki
ng w
ithou
t sy
nchr
oniz
atio
n be
twee
n th
e tw
o el
ectr
ic n
etw
orks
400
124
)300
-600
(--
----
The I
raqi
-Turk
ish El
ectri
cal In
terco
nnec
tion
- The
sin
gle
circ
uit
400
kV In
terc
onne
ctio
n lin
e be
twee
n th
e tw
o co
untr
ies w
as o
pera
ted
at 1
54
kV si
nce
Sept
embe
r/20
03-
Anot
her
inte
rcon
nect
ion
line
400
kV w
ill b
e co
nstr
ucte
d be
twee
n th
e tw
o co
untr
ies
to e
n-ha
nce
the
inte
rcon
nect
ion
betw
een
them
.
400
165
400
Iraq
7785
)1(
--
The S
yrian
-Iraq
i Elec
trica
l Inte
rconn
ectio
n- A
ll w
orks
of t
he in
terc
onne
ctio
n lin
e 40
0 kV
wer
e co
mpl
eted
in b
oth
coun
trie
s.- T
he p
roje
ct is
not
ope
rate
d un
til n
ow d
ue
to th
e pr
evai
ling
cond
ition
s.40
028
300
----
--
The J
orda
nian
-Pale
stini
an El
ectri
cal In
terco
nnec
tion
(JERI
CHO)
132*
3020
Pale
stin
ian
41.4
--
The J
orda
nian
-Pale
stini
an El
ectri
cal In
terco
nnec
tion
(Wes
t Ban
k)
- Wor
k co
ntin
ues
to im
plem
ent t
his
proj
ect,
thro
ugh
prep
arin
g th
e w
ork
plan
s an
d se
-cu
ring
the
requ
ired
finan
cing
for t
he p
roje
ct
from
bot
h th
e Jo
rdan
ian
and
Pale
stin
ian
side
s.
400
101
----
--
The E
gypt
ian-P
alesti
nian
Elec
trica
l Inte
rconn
ectio
n (G
aza)
- Thi
s pr
ojec
t is
cons
ider
ed o
ne o
f the
str
ate-
gic
proj
ects
in G
aza
strip
. The
pro
ject
cos
t is
estim
ated
to b
e ab
out (
31.5
) mill
ion
dolla
rs.
220
70)7
0-15
0(--
--
Pan
Arab
Elec
trica
l Inte
rconn
ectio
n:-
The S
audi
-Egy
ptian
Elec
trica
l Inte
rconn
ectio
n
- The
inte
rcon
nect
ion
agre
emen
ts b
e-tw
een
the
two
coun
trie
s w
ere
sign
ed o
n 12
/12/
2013
. Th
ese
agre
emen
ts in
clud
e:El
ectr
ical
Inte
rcon
nect
ion
agre
emen
t, El
ec-
tric
al In
terc
onne
ctio
n op
erat
ion
agre
emen
t.- I
t is
expe
cted
to c
ompl
ete
the
proj
ect d
ur-
ing
thre
e ye
ars.
The
com
mer
cial
ope
ratio
n w
ill s
tart
ear
ly 2
018.
500
1395
**
3000
----
The S
audi
-Jord
anian
Elec
trica
l Inte
rconn
ectio
n40
012
7-
----
The
Egyp
tian-
Suda
nese
Ele
ctric
al In
terc
on-
nect
ion
- The
pro
ject
exe
cutiv
e pr
oced
ures
com
-m
ence
d ea
rly 2
014
afte
r com
plet
ing
the
prep
arat
ion
of th
e fe
asib
ility
stu
dies
.- I
t is
expe
cted
to c
ompl
ete
the
proj
ect d
ur-
ing
the
year
201
6.
220
160
)70-
200(
* O
pera
tes
at 3
3 kV
*
* O
f whi
ch (1
370)
km
ove
rhea
d lin
es +
(25)
km
sub
mar
ine
cabl
e (
1) D
ata
2014
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Table (27): Projects of New Interconnection Lines and enhancement of existing lines
ProjectCommencement
of the Project Implementation
Operation Date
Voltage (kV)
Grid Length(km)
Enhancing single circuit interconnection line / Tunis – Libya 2015 2020 400 280Enhancing single circuit interconnection line / Egypt – Libya 2015 2019 500 165Enhancing double circuit interconnection line / Egypt – Sudan 2015 2025 500 775Constructing double circuit interconnection line / Saudi Arabia – Jordan 2015 2020 400 127Constructing a DC interconnection line / Egypt - Saudi Arabia 2015 2020 500 1370
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3- NEPCO’s Duties and Activities:First) Operation of the Jordanian Electric Power System:-• NEPCO, through its National Control Centre, manages and operates the electrical power system in Jordan
through implementing the daily operation activities in accordance with the power system requirements aiming at providing electricity for all consumers with the best specifications and international standards as well as a possible lowest cost by utilizing the available energy resources.
Among the most essential procedures taken by NEPCO in this context are:• Maintaining the continuity of the electrical power supply along with the safety and security of the
electrical system itself as well as its staff. • Working continuously throughout the day’s hours to reduce the cost of purchasing the electrical
energy by following an appropriate operational mode in all circumstances. • Utilizing the electrical interconnection lines with the neighbouring countries in an optimal way in
order to reduce the cost of energy production. • Monitoring and controlling the power system frequency to be in accordance with the technical
standards related to the national transmission grid. • The electrical power system in Jordan consists of the main generating stations, transmission networks of
400, 132 kV which interconnect these stations with the load centres in the kingdom, in addition to the 400 kV interconnection line with Syria and the 400 kV submarine cable which connects the Jordanian network with the Egyptian network as well as the national control centre and distribution networks which provide electricity to about (99.9%) of the population.
The electricity power system in Jordan includes also some private power stations which could be synchronized with the rest of power stations in the interconnected power system, while other private power stations serve their owners only and they are not connected to the interconnected power system.
Table (28): Equipment which were electrified within the electric power system for the year 2015
Substation Completion Date
The Third steam unit of the Expansion project of Al-Samra substation 132 kV 15 / 06 / 2015Al-Karama transmission line circuit of Expansion project of Al-Risha substation 11 kV 16 / 02 / 2015The switchgears Y1005, Y805 of Expansion project of Al-Azraq 11 kV (generation by solar energy) 18 / 02 / 2015The feeders (8L5, 10L5) for the first time at Irbid East substation 01 / 04 / 2015The feeder (6L5) for the first time at Irbid East substation 13 / 04 / 2015The feeder (6L5) for the first time at Al-Hassan Industrial City substation 04 / 05 / 2015The main bus bars at expansion project of Al-Bayader substation 10 / 05 / 2015secondary bus bars and the 132 kV switchgears in Al-Bayader substation expansion project 14 / 05 / 2015Al-Tafila wind plant 30 / 05 / 2015The feeder 2L5 at Shamsona plant in Aqaba thermal power station, for the first time 22 / 11 / 2015All inverters related to Shamsona plant were introduced in service. They are 7 inverters. 23 / 11 / 2015The commercial operation of Shamsona generating plant 24 / 11 / 2015
Second) Planning Studies:-
A) Forecast of Electrical Energy and Peak Loads:
• NEPCO updated in 2015 the study of the demand for electrical energy for the period (2016-2040), taking into consideration the technical developments and economical variables which affect the electrical energy demand especially the growth rates of the Gross Domestic Product (GDP), whereas the GDP growth rate in the year 2015 amounted to (2.4%) in fixed costs against (3.1%) in the year 2014.
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• The peak load in the kingdom amounted to (3330) MW in 2015 compared with (2930) MW in December 2014 representing annual growth of (13.7%), while the peak load of the electric power system amounted to (3300) MW in August 2015 against (2900) MW in December 2014 with a percent reduction amounted to about (13.8%).
• The average annual growth rate of the power system peak load for the last five years was about (5.4%), while it is expected that the electrical loads will grow annually by a percentage of (5.5%) to (6.0%) during the period (2016-2030) as denoted in the demand forecast study.
• The average annual growth rate of the electrical energy generated in the kingdom for the last five years was about (5.2%), while it was about (4.7%) for the consumed electrical energy for the same period.
• As for the production of the electrical energy in the kingdom in the future years is expected to grow annually by a percentage of (5.7%) for the period (2016-2030) which is supposed to face the expected increase of the electricity demand in the coming years which is based on various variables such as the expected growth rate of population, and economy as well as consumption patterns of the electrical energy.
Table (29): System Peak Loads (MW)
YearInterconnected System* Interconnections Industrial
SectorAll Jordan
Generated Sent-out Imported Exported Generated** Sent-out
2012 2880 2770 -- 40 20 2900 27902013 3100 2975 -- 18 20 3120 29952014 3020 2900 29 -- 30 3050 29302015 3435 3300 -- 99 30 3470 3330
* Included the imported loads from Interconnected Lines.**(4.1% x Exported Load) (2013,2014) Winter Load/December
Table (30): Electricity Demand Forecast in the Interconnected System
YearMax. Demand* Electrical Energy Generated
MW Growth (%) GWh Growth (%)
2016 3485 5.6 19559 5.52017 3677 5.5 20654 5.62018 3879 5.5 21852 5.82019 4092 5.5 23097 5.72020 4317 5.5 24368 5.52025 5643 5.5 32303 5.82030 7375 5.5 42419 5.6
* Summer Loads.
B) Implemented and Under Construction Generation Projects:The National Electric Power Company has prepared an expansion plan for electricity generation for the period (2016 – 2040) to secure the needs of the Jordanian power system to the generating capacity for the purpose of facing the expected demand on electrical energy, and securing a safe operation of the power system taking into consideration the utilization of fuel local resources especially the oil shale and nuclear energy in addition to the renewable energy resources. A summary of the projects scheduled within the generation expansion plan can be as follows:
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Table (31): Future Expansion Projects of the Generating Capacity
Project/PlantCapacity
MWExpected addition date
Solar energy Projects (Direct Proposals) / Ma’anDevelopmental Zone 200 Second Half / 2016Al-Hussein University Wind Project 80 Second Half / 2016Al-Queira Solar Project 103 Second Half / 2016Al-Rajif Wind Project 83 Second Half / 2017(Al-Tafila Wind Project (Xnel + KOSPO 100 Second Half / 2017Al-Fujaije Wind Project 90 Fourth Quarter / 2018Al-Samra Generation Project / Fourth Stage 75 First Quarter / 2018
Al-Hussein thermal power station rehabilitation project300 Fourth Quarter / 2017180 First Quarter / 2018
Oil Shale Project I235 Second Half / 2019235 End of 2019
Oil Shale Project II 600 2022-2023
Jordanian nuclear plant project1000 2024 – 20251000 -
Third) The Technical and Administrative Supporting Services:-A) Quality and Public Safety
The National Electric Power Company has carried out numerous measures that aim to develop work, improve performance and fulfil conditions of public safety, occupational health and environment. These measures can be clarified as follows:• Following up the progress of the actual work in all projects and annual maintenance programs. • Carrying out the technical audit programs for all the company’s activities and duties, and following up work stages
according to the scheduled time table.• Preparing and implementing the required awareness and educational programs so as to develop the preventive
awareness level for the company’s employees in fields of public safety and accidents preventive. • Preparing and constantly updating the company’s emergency plan.• Providing all public safety equipments, fire fighting equipments and personal protective equipments for NEPCO’s
employees in compliance with the international specifications. • Conducting the necessary studies and analysis of the accidents and work injuries for determining the causes of
accidents and know how to address these causes in order to avoid their future occurrence. • Following up and maintaining the quality management system IS9001 in accordance with the requirements
of international standard specifications (ISO). The system has been applied on all the company’s activities and procedures complying with the latest version of ISO specifications 9001:2008.
• Adopting the environmental management system ISO14001, and safety management system and occupational health OHSAS 18001.
• The department of quality and public safety in cooperation with the department of software and data have worked on the automation of quality management system and computerization of operations of documents definition and internal audit of the system which simplifies work procedures.
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B) Electric Training Centre:The electric training centre was established in the year 1986, this centre includes a number of laboratories and workshops in addition to training squares or areas.
The Centre’s objectives:- Rehabilitation of the new technical staff of NEPCO, corporations and other local companies. - Training the technical staff (Efficiency upgrading courses) of NEPCO, corporations and other local
companies. - Training students of the universities, internal and external institutions.- Training technical personnel in sisterly Arab states and friendly countries. - Maintaining and manufacturing spare parts for some appliances and equipments used in the company.
Fields of training program:- Operation and maintenance of power stations.- Programmed Logic Control (PLC) and SCADA system.- Design, install, operate, maintain and test the transmission network.- Design, install, operate, maintain and test the distribution networks, as well as the consumers’
services and electric metering testing.- Domestic electrical installations, testing and detecting them.- Operate, test and calibrate the electric protection systems.
The number of trainees who benefited from the activities of the Electric Training Centre during the year 2015:
Program Name No. Of Participants
Long-term training program (formal) 41 Short-term local and internal training programs 176 Training programs related to the universities 405 External training program in cooperation with JICA 160 External training program in cooperation with Local corporations 192
C) International Services and Investment:During the year 2015, National Electric Power Company provided, through the International services and Investment Department, several services and consultations and carried out many training programs at internal and external levels, among the most prominent achievements are the following:
Inside Jordan- Leasing some filaments of dark fibre optic owned by the National Electric Power Company to local companies and
governmental bodies. - Providing engineering and consulting services in the administrative, financial and computer fields to many local
corporations and companies as well as sisterly electricity companies. - Implementing training programs at the Electric Training Centre of the National Electric Power Company to many
industrial corporations and companies, electricity companies and university students in the kingdom. - Carrying out actions of inspection and refining oils of electric transformers for the benefit of local companies and
sisterly electricity companies.
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- Implementing an expansion project of the airport substation (QL-2) for the benefit of the international airport group. - Implementing a training program in field of designing and installing overhead distribution networks at the electric
training centre to (12) participants from Omani water and electricity company through Petra Company for training.- Implementing a number of training programs at the electric training centre for the benefit of Libyan personnel from
the Libyan electricity companies in the field of technical programs which include operation and maintenance of the substations (transmission and distribution), predictive maintenance of distribution system, installation of reciprocity and transitional links, tightening and maintenance of conductors and insulators of 220 kV and 400 kV as well as maintenance and operation of the distribution system and others.
- These programs were carried out through local companies and training centres, so in this context eight programs were carried out for the benefit of (182) trainees during the year 2015.
Outside Jordan- A quad agreement was signed between the National Electric Power Company and the Egyptian Company for
Electricity Transmission as one side with the Egyptian Company for Communication and the Egyptian – Jordanian Company for Data Transmission (TE Data) as the other side. This agreement includes leasing two filaments from the Submarine fibre-optic cable extended between Egypt and Jordan for a period of four years.
- Continuation of work by the consultancy services agreement related to the project Safer – Mareb 400/132 kV substations and 132 kV transmission line of length (50) km in favour of the Yemeni Public Electricity Corporation through the engineering office in Amman.
- Signing a memorandum of understanding for implementing (11) training programs for the benefit of cadres from Iraqi Ministry of Electricity as well as Ministry of Electricity in Kurdistan region in Iraq, in cooperation with the Japanese International Cooperation Agency (JICA) through the third country training program in both technical and administrative fields. The total number of trainees (167) trainees in the year 2015.
- Work continues within the memorandum of understanding signed with the Japanese International Cooperation Agency (JICA) through the third country training program in implementing six training programs for the benefit of cadres from electricity distribution companies and Transport Company subordinated to Palestinian Authority for Energy in both technical and administrative fields. The total number of trainees reached to (85) trainees in the year 2015.
- Signing an agreement with the Consulting House for Energy and Engineering / Riyadh for a secondment of an electrical engineer from the National Electric Power Company to work as a consultant for the Ministry of Water and Electricity in the Kingdom of Saudi Arabia, up to May 2016.
D) Manpower Training:- The corporations achieve their missions and objectives, whether present or future, relying on the efficiency
of their manpower and the technical skills and behaviour they own, since the training process is closely linked to the development of skills and efficiency upgrading, the efforts made for training are always continuous in order to develop, improve the employees performance and increase their productivity.
- In this context, the company made strenuous efforts through its Human Resources Department in the field of developing employees’ performance and upgrading their efficiency. In this regard, various training programs were carried out by the company for all employees at different administrative levels. Moreover, many employees have been delegated in different training courses and thus expanding the participation process in these courses. Accordingly, this will be reflected positively on the development of employees’ skills, their knowledge and productivity.
- In the field of community service, the company made available training opportunities for students of the universities and institutions as well as for the newly graduated Engineers through two cooperative programs with the Jordan Engineers Association and Ministry of Public works and Housing proceeding from the principle of the community service.
- At the end of the year 2015, the number of NEPCO’s employees was (1419) employee, of which the engineers constituted (21.3%), the technicians (35.3%), the financers (6.0%), the administrators (17.2%) and the supporting services (20.2%).
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Fourth) Financial Performance:-
إجمالي اإليرادات لعام 2015 (1518.2) مليون دينار
أرباح فروقات أسعار العملة% 0.32
إيرادات أخرى% 0.45
مبيعات الطاقة الكهربائية% 99.32
إجمالي اـصاريف لعام 2015 (1751.2) مليون دينار
األهتالك1.48%
مصاريف الصيانة 0.17%
مصاريف إدارية وتشغيليةمصاريف التمويل1.88%
6.46%
اخرى0.51%
مشتريات الطاقة الكهربائية89.50%
Total Revenues 2015 (1518.1) Million JD
Total Expenses 2015 (1751.2) Million JD
Sale of Energy Revenues
Purchase of Energy
Depreciation
Maintenance Expenses
Administrative and Operating Expenses
Financce Cost
Other Expenses
Other Revenues
Gains on Foreign Currency Differences, Net
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Fifth) National Grid in Jordan’s Power System:-
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Financial Statements
National Electric Power CompanyThe Hashemite Kingdom of Jordan
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Independent Auditor’s Report
Messer’s National Electric Company(Public Shareholding Company)Amman – JordanReport on the Separate Financial Statements
We have audited the accompanying separate financial statements of National Electric Company (Public Shareholding Company), which comprise the statement of separate financial position for the year ended 31 December 2015, the statement of separatecomprehensive income, the statement of separatechanges in equity, the statement of separatecash flow and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Separate Financial StatementsManagement is responsible for the preparation and fair presentation of these separate financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s ResponsibilityOur responsibility is to express an opinion on these separate financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the separatefinancial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the separatefinancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the separatefinancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
OpinionIn our opinion, the separate financial statements present fairly, in all material respects thefinancial position of theNational Electric Company (Public Shareholding Company)as at 31 December 2015 and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.
Other mattersWe draw attention that the company’s incurred accumulated losses of approximately JD 4.9 billion and have exceeded 21 times it’s capital. however, this condition does not indicate the existence of a material uncertainty that may cost significant doubt about the company’s ability to meet its obligation on the company is wholly owned by the Government of the Hashemite Kingdom of Jordan.According to IAS23 “Borrowing costs” the financing expenses on projects under construction are not capitalized due to difficulty of identifying the average capitalized rates for the years related to projects under construction, and the direct relation connection between borrowing and covering fuel prices differences and not operating expenses for transportation, the effect of such finance cost on financial statements including related depreciation expenses is considered immaterial.The separate financial statements for the year ended 31 December 2014 were audited by another auditor,which issued an unqualifiedauditor’sreport dated on 25 January 2015.Report on other Legal and Other Regulatory RequirementsThe company maintains proper accounting records, and the audited financial statements and the financial information stated in the report of the board of directors are in agreement with these records, and we recommend the general assembly to approve them.
Samman Co.
Rami Samman
License No.594
17April 2016
Amman - Jordan
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Statement of separate financial position Asat 31 December2015
Notes2015 2014
JD JD
Assets
Non current assets
Property and equipment - net )6( 476,461,591 465,495,323Subscribers› contributions assets - net )6( 63,754,550 67,681,585Investments in subsidiaries )7( 100,000 100,000Investments in financial assets at fair value through other comprehensive income )8( 1,492,911 1,681,284
Company›s contribution in employees’ housing fund )9( 2,799,061 2,518,061544,608,113 537,476,253
Current Assets
Inventory )10( 43,072,700 25,811,782Other debit balances )11( 11,983,386 10,308,679Accounts receivables )12( 398,454,772 345,726,941Cash and cash equivalents )13( 5,392,743 359,457
458,903,601 382,206,859Total Assets 1,003,511,714 919,683,112
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Equity and Liabilities Notes 2015 2014Equity (22) JD JD
Share capital 230,000,000 230,000,000Statutory reserve 6,384,000 6,384,000Voluntary reserve 4,730,371 4,730,371Special reserve 4,730,371 4,730,371Treasury rights 22,006,775 22,006,775
Accumulated change in fair value of investment in financial
assets at fair value through other comprehensive income1,184,338 1,372,712
Accumulated losses )4,871,782,665( )4,638,824,100(Net Equity )4,602,746,810( )4,369,599,871(Liabilities
Non current liabilities
Net subscribers’ contributions (6) 63,754,550 67,681,584Loans (14) 1,371,567,427 623,056,073Bonds payable (15) 300,000,000 300,000,000End of service indemnity provision (16) 6,746,005 6,897,349Subscribers’ contributions received on projects under construction (17) 20,103,371 16,772,371
1,762,171,353 1,014,407,377Current Liabilities
Income tax provision (18) 3,971,473 3,971,473Other credit balances (19) 66,154,512 61,141,219Accounts payables (20) 3,051,702,916 3,394,548,929Loans (14) 670,817,372 788,053,636Bank facilities (21) 51,440,898 27,160,349
3,844,087,171 4,274,875,606Total Liabilities 5,606,258,524 5,289,282,983Total Equity and Liabilities 1,003,511,714 919,683,112
Statement of separate financial position As at 31 December 2015
The separate financial statements on pages [1] to [35] were approved and authorized for issue by the Board of Directors on 17 April 2016:
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Statement of separate comprehensive income for the year ended 31 December 2015
Notes2015 2014
JD JD
Operating Revenues
Sales of energy revenues )23( 1,506,597,012 1,391,489,582Other energy revenues 140,167 52,343
1,506,737,179 1,391,541,925 Operating Expenses
Purchases of energy )24( ) 1,567,417,504( ) 2,424,676,884(Cost of delivering gas to new energy stations ) 8,202,766( ) 5,076,806(Maintenance expenses ) 2,943,011( ) 2,307,447(Administrative and operating expenses )25( ) 32,904,122( ) 28,110,002(Depreciation )6( ) 25,854,510( ) 26,320,694(
) 1,637,321,913( ) 2,486,491,833(Accounts receivables ) 130,584,734( ) 1,094,949,908(Previous years settlements of accounts )28( )683,661( 1,312,240 Net foreign exchange gain 4,803,385 3,890,630 Other revenues )26( 6,731,034 14,522,604 Other expenses )27( )87,622( )131,541(Finance expenses )113,136,967( )103,907,631(
Loss for the year ) 232,958,565( ) 1,179,263,606(
Add: other comprehensive income
Accumulated change in fair value of investment in financial assets at fair value through other comprehensive income )188,374( )153,041(
Comprehensive Loss ) 233,146,939( ) 1,179,416,647(
Loss Per Share )29( )1,014( )5,128(
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Statemen
t of sep
arate chan
ges in
equ
ity for th
e year end
ed 31 D
ecemb
er 2015
Share cap
italStatutory
reserveV
oluntary reserve
Special
reserveTreasury
rights
Accumulated change in
fair value of investment
in financial assets at fair value through
other comprehensive
income
Accum
ulatedlosses
Total
JDJD
JDJD
JDJD
JDJD
31 Decem
ber 2014230,000,000
6,384,0004,730,371
4,730,37122,006,775
1,372,712)4,638,824,100(
)4,369,599,871(
Comprehensive Loss
- -
- - -
)188,374()232,958,565(
)233,146,939(
31 Decem
ber 2015
230,000,0006,384,000
4,730,3714,730,371
22,006,7751,184,338
)4,871,782,665()4,602,746,810(
31 Decem
ber 2013230,000,000
6,384,0004,730,371
4,730,37122,260,282
1,525,753)3,459,560,494(
)3,189,929,717(
Comprehensive Loss
- -
- -
- )153,041(
)1,179,263,606()1,179,416,647(
Treasury Rights-
- -
- )253,507(
- -
)253,507(
31 Decem
ber 2014
230,000,0006,384,000
4,730,3714,730,371
22,006,7751,372,712
)4,638,824,100()4,369,599,871(
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Notes2015 2014
JD JD
Operating activities
Loss for the year )232,958,565( )1,179,263,606(Adjustments for:
Depreciation )6( 25,854,509 26,320,693Impairment for slow moving inventory 544,431 683,267Provision for impairment of trade receivables 5,056,217 44,597Gains from sale of property and equipment )9,999( )15,998(Finance expenses 113,136,967 103,907,631End of service indemnity provision )16( 344,070 994,610
)88,032,370( )1,047,328,806(Inventory ) 17,805,349( ) 1,177,134(Other debit balances ) 1,674,707( 1,945,636 Account receivables - net ) 57,784,048( ) 35,662,347(End of service indemnity provision ) 495,414( ) 532,516(Subscribers› contributions received on projects under construction 3,331,000 4,182,371 Other credit balances ) 4,263,687( ) 828,036(Account payables ) 342,846,013( 1,423,506,659 Net cash flow from operating activities ( 509,570,588) 344,105,827 Investing activities
Purchase of property and equipment )6( ) 36,821,285( ) 31,062,192(Proceeds from sale of property and equipment 10,507 16,001 Company›s contribution in employees’ housing fund ) 281,000( ) 281,000(Net cash flows from investing activities ( 37,091,778) ( 31,327,191)Financing activities
Treasury rights - ) 253,507(Bonds payable - ) 198,600,673(Interest paid on bank loans ) 103,859,987( ) 101,684,005(Loans 631,275,090 12,744,550 Bank facilities 24,280,549 ) 25,243,109(Net cash flows from financing activities 551,695,652 ( 313,036,744)Net Increase (Decrease) in cash and cash equivalent 5,033,286 ) 258,108(Cash and cash equivalent - beginning of the year 359,457 617,565Cash and cash equivalent - end of the year )13( 5,392,743 359,457
Statement of separate cash flows For the year ended 31 December 2015
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1- General
National Electric Company was established on 29 August 1996 and registered as a Public Shareholding Company under registration number (316) pursuant to the Council of Ministers resolution to convert Jordan Electric Authority to a limited public shareholding company.Pursuant to the Council of Ministers’ decision in its meeting heldon 4 October 1997, National Electric Power Company was restructured into three separate companies as of the beginning of January 1999, while maintaining electrical and transmission control, energy purchase and sale, and energy exchange with nearby countries within National Electric Power Company.
The company is completely owned by the Government of the Hashemite Kingdom of Jordan.The company’s purposes include purchasing energy from energy generating companies and to sell it to distribution companies and major consumers who are provided of transmission networks around the country, electric power exchange with nearby countries and purchasing special kind of natural gas for electric generating companies then sell it to electric generating companies. The company is located in Sweifieh-Amman.
2- Basis of preparation The principal accounting policies adopted in the preparation of the separate financial statements are set out below. The policies have been consistently applied to all the years presented, unless otherwise stated.The separate financial statements are presented in JD, which is also the company’s functional currency.
Amounts are rounded to the nearest JD.These separate financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRS) as adopted by the Jordanian laws. The preparation of separate financial statements in compliance with adopted IFRS requires the use of certain critical accounting estimates. It also requires Company management to exercise judgment in applying the Company’s accounting policies.The areas where significant judgments and estimates have been made in preparing the financial statements and their effect are disclosed in note 3.
Basis of measurementThe financial statements have been prepared on a historical cost basisexcept financial assets at fair value through comprehensive income which is clarified in its own accounting policy section.Changes in accounting policiesa) New standards, interpretations and amendments effective from 1 January 2015:The following new standards, amendments and interpretations are effective for the first time in these interim financial statements. However, none have a material effect on the company:
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1) Annual Improvements to IFRSs (2010 – 2012 Cycle):• IFRS 2 – Share Based Payments.• IFRS 3 – Business Combinations.• IFRS 8 – Operating Segment.• IFRS 13 – Fair Value Measurement.• IAS 16 – Property, Plant and Equipment.• IAS 24 – Related Party Disclosures.• IAS 38 – Intangible Assets.2) Annual Improvements to IFRSs (2011 – 2013 Cycle):• IFRS 1 – First-time adoption of IFRS.• IFRS 3 - Business Combinations.• IFRS 13 - Fair Value Measurement.• IAS 40 – Investment Property.
3) Amendments to IAS 19-Employee Benefits(Defined Benefit Plans).b) New standards, interpretations and amendments not yet effectiveThe new standards, interpretations and amendments, which are effective for periods beginning after 1 January 2015 and which have not been adopted early, are not expected to have a material effect on the Company’s future separate financial statements.
3- Critical accounting estimates and judgmentsThe company makes certain estimates and assumptions regarding the future. Estimates and judgments are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.Property and equipmentThe company reviewed the estimated useful life of property and equipment and depreciation method to verify that it’s reflects the used economic benefits and in case there is a difference it will be treated as changes in estimates (in the year of change and subsequent years).InventoryThe company reviewed the estimated for inventory periodically, depending on his condition and it’s stay period in warehouses in addition to estimating the value realizable in the future. Spare parts that didn’t move for more than 5 years are depreciated by 15% annually and deducted from initial cost for each unit.
Income tax The company is subject to income tax and significant judgment is required in determining the provision for income taxes. During the ordinary course of business, there are transactions and calculations for which the ultimate tax determination is uncertain. As aresult, the company recognizes tax liabilities based on estimates of whether additional taxes and interest will be due.
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4- Accounting policiesProperty and equipmentItems of property and equipment are initially recognized at cost. As well as the purchase price, cost includes directly attributable costs.Depreciation on projects under construction does not commence until they are complete and available for use. Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates:
Asset Depreciation %Buildings 2-3.3Transmission lines 2.5Transformation stations 3.3Land lines 2.8Transmission lines- sea cable 2.5Fiber optics communication tools 10Furniture and office equipment 10Vehicles 20Tools and equipment 10Operators and communication devices 5Control and monitoring devices 12.5Computers 20Other equipment 10Legal compensation assets* 10Others 3-20
Items of property and equipment are derecognized upon disposal or when the items are permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the assets) is included in profit or loss in the period in which the asset is derecognized.(*) According to the decision of the Electricity Regulatory Commission in its meeting held on 18 October
2003, compensations paid by electricity companies to land lords whom electricity networks pass by their lands are considered capital expenditures as they appear in the statement of financial position under legal compensation assets that are depreciated over 10 years, compensations paid during the year are capitalized at the end of the fiscal period starting from 1 January 2003.
Subscribers’ contributionsSubscribers’ contributions are recorded at the amounts receivedfrom major consumers in order to build private transformation stations for them. Those contributions are classified as non-current assets under property and equipment and conversely as non-current liabilities.
Subscribers contributions assets are depreciated at straight line method by %4 annually where
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subscriber’s contributions are amortized at straight line method by %4 annually from the contributed value at the end of the year according to the ministerial instructions referred to in the prime ministry’s letter number 3/11/6189 dated on 4 June 1985.
InventoriesInventories are initially recognized at cost, and subsequently at the lower of cost and net realizable value. Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.
Weighted average cost is used to determine the cost.
Financial assets The Company classifies its financial assets into one of the categories discussed below, depending on the purpose for which the asset was acquired. The Company has not classified any of its financial assets as held to maturity.
The Company accounting policy for each category is as follows:
Investment in subsidiaries
Investments in subsidiariesrecognized at cost in financial statements, profit of investments islimited to theaccrued dividends.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income are strategicinvestments in other companies’ stocksthat are not held for trading.
Financial assets through other comprehensive are recognized at fair value plus other expenses occurred upon purchasing and it’s revaluated at fair value. Changes in fair value appear in other comprehensive income and equity.
Loans and receivablesThese assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers (e.g. trade receivables), but also incorporate other types of contractual monetary asset. They are initially recognized at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortized cost using the effective interest rate method, less provision for impairment.Impairment provisions are recognized when there is objective evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in payment) that the Group will be unable to collect all of the amounts due under the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable. For trade receivables, which are reported net, such provisions are recorded in a separate allowance account with the loss being recognized within administrative expenses in the consolidated statement of comprehensive income. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision. According to the company’s policy a trade receivable is accrued after 30 days of the invoice issuance date.
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Loans and receivables include, cash and cash equivalents, trade receivable and other debit balances as is displayed in statement of financial position.
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less.
Financial liabilitiesThe Company classifies its financial liabilities depending on the purpose for which the liability was acquired. The Company accounting policy for each category is as follows:
Bank borrowings Bank borrowings are initially recognized at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest bearing liabilities are subsequently measured at amortized cost using the effective interest rate method. Interest expense in this context includes initial transaction costs and any interest payable while the liability is outstanding.
Other financial liabilities Trade payable and other credit balances Trade payables and other short-term monetary liabilities, which are initially recognized at fair value and subsequently carried at amortized cost using the effective interest method.RevenueSales of energy revenuesProvided the amount of revenue can be measured reliably and it is probable that the Company will receive any consideration. Revenues are recognized in the period in which the company provide energy for distribution companies, major customersand when it exchanges energy with nearby countries where the company issue an invoice with rate specified by the government for local customersand international agreements.
DividendsDividends are recognized when they become legally payable this is when approved by the General Assembly ofshareholders.
Bank interest Bank interest revenue is calculated on an accruals basis.
Interest of late paymentInterest revenues of late payments are recognized when received.
Borrowing costsBorrowing costs are capitalized, net of interest received on cash drawn down yet to beexpended when they are directly attributable to the acquisition, contribution or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale and appear in comprehensive income statement for the period they occurred.
ProvisionsProvisions are recognized when the Company has a present obligation (legal or constructive) as result
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of past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risk and uncertainties surrounding the obligation.When some or all the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
End of service indemnityThe company pays the equivalent to a one-month salary for each year of services less the company’s social security contribution for employees who were in service since 24 December 2002, in accordance with the labor court resolution.Foreign currency transactionsTransactions entered into by Company in a currency other than the currency of the primary economic environment in which it operates (function currency) are recorded at the rates ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated at the rates ruling at the reporting date. Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are recognized immediately in profit or loss.
5- Financial instruments - risk managementThe Company is exposed through its operations to the following financial risks:• Credit risk• Market risk• Liquidity riskIn common with all other businesses, the Company is exposed to risks that arise from its use of financial instruments. This note describes the Company objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements. There have been no substantive changes in the Company exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.
1. Principal financial instruments The principal financial instruments used by the Company, from which financial instrument risk arises, are as follows:• Trade and other debit balances• Cash and cash equivalent• Trade and other credit balances• Bank facilities• Investments in financial assets at fair value through other comprehensive income• Loans• Bonds payable
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2. Financial instruments by category2015 2014
JD JD
Financial assets
Loans and debit balances
Accounts receivable, net 398,454,772 345,726,941Other debit balances 6,705,209 5,201,990Cash and cash equivalents 5,392,743 359,457Total loans and debit balances 410,552,724 351,288,388
Investments in financial assets at fair value through othercomprehensive income 1,492,911 1,681,284
Total financial assets 412,045,635 352,969,672Financial liabilities
Liabilities measured at amortized cost
Accounts payables 3,051,702,916 3,394,548,929Other credit balances 64,806,318 58,195,780Banks over drafts 51,440,898 27,160,349Bonds payable 300,000,000 300,000,000Loans 2,042,384,799 1,411,109,709Total financial liabilities 5,510,334,931 5,191,014,767
3. Financial instruments not measured at fair valueA financial instrument not measured at fair value includes cash and cash equivalents, trade and other receivables and investments in subsidiaries and trade and other payables.
Due to their short-term nature, the carrying value of these financial instruments approximates their fair value.
4. Financial instruments measured at fair valueinputs used in fair value measurement categories the valuation techniques used to measure fair value into three (input) levels:level one: observable quoted prices in active markets for assets or liabilities that company can obtain.level two: quoted prices are not available but fair value is based on observable market data and inputs are observable directly or indirectly for assets or liabilities.level three: unobservable inputs for assets or liabilities.Fair value level for investments in financial assets at fair value through other comprehensive income is level one.
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5. General objectives, policies and processes The Board has overall responsibility for the determination of the Company risk management objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the Company finance function.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Company competitiveness and flexibility. Further details regarding these policies are set out below:
Credit riskCredit risk is the risk of financial loss to the Company if a costumer or counterparty to a financial instrument fails to meet its contractual obligations. The Company is mainly exposed to credit risk from credit sales. Usually those risks considered immaterial because the company deals with distribution companies with an acceptable credit rating.
Credit risk also arises from cash and cash equivalents. For banks, the Company deals with banks with an acceptable credit rating.
Market riskMarket risk arises from the Company use of interest bearing, tradable and foreign currency financial instruments. It is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk), foreign exchange rates (currency risk) or other market factors (other price risk).
Fair value and interest rate riskFinancial instruments will expose the company to cash flow interest rate risk from financial instruments at variable rate. The company is not exposed to this type of risk due to not holding any financial instruments at variable rates.
Foreign exchange riskForeign exchange risk arises when company has financial transactions/ deals in a currency other than their functional currency. The company is exposed to this type of risk due to loans in foreign currencies.
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As of 31 December the company’s net exposure to foreign exchange risk was as follows:Euro Swedish Krona SDR Kuwaiti Dinar
2015 2014 2015 2014 2015 2014 2015 2014JD JD JD JD JD JD JD JD
Financial assets/liabilities
Cash and cash equivalent 1,115 2,087 - - - - - -
Account receivable 322,111 - - - - - - - Account payable ) 179,376( - ) 2,016,998( - - - - - Loans ) 1,681,436( ) 1,974,368( - - ) 30,095,052( ) 33,011,368( ) 38,301,276( ) 48,621,186(
) 1,537,586( ) 1,972,281( ) 2,016,998( - ) 30,095,052( ) 33,011,368( ) 38,301,276( ) 48,621,186(
The company is not exposed to currency exchange risk for the financial liabilities in US dollars since the Jordanian Dinar is fixed against the US dollars.The effect of a 5% increase in the value of financial instruments held at the reporting date would, all other variables held constant, have resulted in a loss and decrease in the net assets at the following amounts:
2015 2014JD JD
Euro 76,879 98,614 SDR 1,504,753 1,650,568 Kuwaiti Dinar 1,915,064 2,431,059 Swedish Krona 100,850 -
3,597,546 4,180,241 Other market riskThe company is exposed to other market price risk due to its investments in subsidiaries and investments in financial assets at fair value through other comprehensive. The maximum amount exposed to fair value fluctuations for those investments is JD 1,592,911 for year 2015 (2014: 1,781,284).
Liquidity riskLiquidity risk arises from the Company’s management of working capital. It is the risk that the Company will encounter difficulty in meeting its financial obligations as they fall due.The company policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. The following table sets out the contractual maturities (representing undiscounted contractual cash-flows) of financial liabilities:
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Up to one year Over one year
JD JD
31 December 2015
Loans 670,817,372 1,371,567,427Bonds payable - 300,000,000Other credit balances 66,154,512 - Accounts payable 3,051,642,837 - Bank Facilities 51,440,899 -
3,840,055,620 1,671,567,42731 December 2014
Loans 788,053,636 623,056,073Bonds payable - 300,000,000Other credit balances 61,141,219 - Accounts receivables 3,394,548,929 - Bank Facilities 27,160,350 -
4,270,904,134 923,056,073
Capital DisclosuresThe Company monitors “adjusted capital” which comprises all components of equity (Share capital, accumulated losses and statutory reserve). The Company’s objectives when maintaining capital are: To safeguard the entity’s ability to continue as a going concern, and so that it can continue to provide returns for benefits for other stakeholders.The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of return capital to shareholders, issue new shares, or sell assets to reduce debt.
The debt-to-adjusted-capital ratios at 31 December were as follows:
2015 2014JD JD
Total loans and borrowings 2,093,825,697 1,438,270,058Less: cash and cash equivalent )5,392,743( )359,457(Net debt 2,088,432,954 1,437,910,601Net equity )4,602,746,810( )4,369,599,871( Debt to adjusted capital ratio (%) )45 %( )33 %(
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6. Property and equipment 2015
Cost Accumulated depreciation
1 January 31 December 1 January 31 December Net BookValueCost 2015 Additions Transfers Disposals 2015 2015 Additions Disposals 2015
JD JD JD JD JD JD JD JD JD JD
Projects underconstruction 20,432,260 22,861,157 )24,399,650( 18,893,767 - - - - 18,893,767
Lands 34,409,670 3,277,340 - - 37,687,010 - - - - 37,687,010 Buildings 67,302,205 - 4,891,131 - 72,193,336 23,423,223 2,092,286 - 25,515,509 46,677,827 Transmission lines 227,668,033 - 2,311,686 - 229,979,719 83,989,224 7,968,267 - 91,957,491 138,022,228 Transformationstations 380,031,859 - 15,740,836 - 395,772,695 157,100,934 11,309,277 - 168,410,211 227,362,484
Land lines 28,362,794 - - - 28,362,794 4,984,792 687,789 - 5,672,581 22,690,213 Transmission lines-sea cable 25,231,064 - - - 25,231,064 10,176,138 630,687 - 10,806,825 14,424,239
Fiber opticscommunication tools 3,776,920 - - - 3,776,920 3,185,414 188,840 - 3,374,254 402,666
Furniture and officeequipment 1,868,556 49,848 - - 1,918,404 1,695,575 66,132 - 1,761,707 156,697
Vehicles 8,264,327 412,048 - )13,750( 8,662,625 6,869,145 369,555 )13,749( 7,224,951 1,437,674 Tools and equipment 2,588,118 45,620 - - 2,633,738 2,198,568 150,711 - 2,349,279 284,459 Operators and communicationdevices
2,616,550 2,352 - - 2,618,902 2,386,083 74,359 - 2,460,442 158,460
Control andmonitoring devices 7,471,171 3,236 - - 7,474,407 5,263,746 369,239 - 5,632,985 1,841,422
Computers 4,753,909 63,486 - )585( 4,816,810 4,495,422 98,465 )78( 4,593,809 223,001 Other equipment 2,218,224 79,454 - - 2,297,678 1,923,396 107,811 - 2,031,207 266,471 Legal compensationassets 73,615,467 9,996,737 - - 83,612,204 50,499,703 5,303,893 - 55,803,596 27,808,608
Others 2,902,230 33,339 1,455,997 - 4,391,566 2,145,086 367,565 - 2,512,651 1,878,915 893,513,357 36,824,617 - )14,335( 930,323,639 360,336,449 29,784,876 )13,827( 390,107,498 540,216,141
Property andequipment 795,255,857 36,821,285 - )14,335( 832,062,807 329,760,534 25,854,509 )13,827( 355,601,216 476,461,591
Subscribers’contributions assets 98,257,500 3,332 - 98,260,832 30,575,915 3,930,367 - 34,506,282 63,754,550
893,513,357 36,824,617 - )14,335( 930,323,639 360,336,449 29,784,876 )13,827( 390,107,498 540,216,141
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Cost Accumulated depreciation
1 January 31 December 1 January 31 December Net BookValueCost 2014 Additions Transfers Disposals 2014 2014 Additions Disposals 2014
JD JD JD JD JD JD JD JD JD JD
Projects underconstruction 18,178,155 24,452,183 )22,198,078( - 20,432,260 - - - - 20,432,260
Lands 33,418,112 991,558 - 34,409,670 - - - - 34,409,670 Buildings 64,212,970 - 3,089,235 - 67,302,205 21,257,387 2,165,836 - 23,423,223 43,878,982 Transmission lines 222,540,711 - 5,127,322 - 227,668,033 76,127,368 7,861,856 - 83,989,224 143,678,809 Transformationstations 366,097,369 - 13,934,490 - 380,031,859 145,484,529 11,616,405 - 157,100,934 222,930,925
Land lines 28,340,961 - 21,833 - 28,362,794 4,295,593 689,199 - 4,984,792 23,378,002 Transmission lines-sea cable 25,231,064 - - - 25,231,064 9,545,451 630,687 - 10,176,138 15,054,926
Fiber opticscommunication tools 3,751,722 - 25,198 - 3,776,920 2,971,938 213,476 - 3,185,414 591,506
Furniture and officeequipment 1,814,443 54,113 - - 1,868,556 1,625,632 69,943 - 1,695,575 172,981
Vehicles 7,772,623 518,104 - )26,400( 8,264,327 6,515,246 380,299 )26,400( 6,869,145 1,395,182 Tools and equipment 2,454,062 134,056 - - 2,588,118 2,002,905 195,663 - 2,198,568 389,550 Operators and communicationdevices
2,604,525 12,025 - - 2,616,550 2,277,148 108,935 - 2,386,083
230,467
Control andmonitoring devices 7,470,825 346 - - 7,471,171 4,894,637 369,109 - 5,263,746 2,207,425
Computers 4,692,592 61,317 - - 4,753,909 4,389,694 105,728 - 4,495,422 258,487 Other equipment 2,056,629 161,595 - - 2,218,224 1,815,881 107,515 - 1,923,396 294,828 Legal compensationassets 68,963,007 4,652,460 - - 73,615,467 44,952,466 5,547,237 - 50,499,703 23,115,764
Others 2,878,315 24,435 - )520( 2,902,230 1,956,500 189,105 )519( 2,145,086 757,144 862,478,085 31,062,192 - )26,920( 893,513,357 330,112,375 30,250,993 )26,919( 360,336,449 533,176,908
Property andequipment 764,220,585 31,062,192 - )26,920( 795,255,857 303,466,760 26,320,693 )26,919( 329,760,534 465,495,323
Subscribers’contributions assets 98,257,500 - - 98,257,500 26,645,615 3,930,300 - 30,575,915 67,681,585
862,478,085 31,062,192 - )26,920( 893,513,357 330,112,375 30,250,993 )26,919( 360,336,449 533,176,908
Property and equipment 2014
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The following projects under construction will be depreciated once the property is complete and available for use:
Book Value
JD
Transmission lines 794,706 Building and expanding transformation stations 13,046,084 Lands and buildings 5,052,977
18,893,767
The lands item within projects under construction above includes JD1,878,000 which is registered under Aqaba Special EconomicZone Authority (ASEZA).Once the construction work will begin,ASEZA will transfer the ownership of the property to the company.The budgeted cost to complete projects under construction is JD 104 million as at 31 December 2015.
7. Investments in subsidiaries
Balance
Legal status Country ofincorporate
Ownershipshare
Type ofBusiness
2015 2014
% JD JD
Energized MaintenanceEngineering Company
Limitedliability Jordan 50 Service 50,000 50,000
National Company for Optic Privateshareholding Jordan 100 Service 50,000 50,000
100,000 100,000
Consolidated financial statements with subsidiaries have not beenpreparedas one group due to the immaterial financial impact for these subsidiaries,the following is a summary of the financial information related to each company as at 31 December 2015:
National Company forOptic
Energized MaintenanceEngineering Company
JD JD
Total assets 59,599 69,650Total Liabilities 2,762 15,275Net equity 56,837 82,662Revenues 10,398 14,376Profit (loss) for the year 6,147 ) 28,287(Mother company›s share of profit and loss 6,147 ) 28,287(
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8. Investments in financial assets at fair value through other comprehensive income2015 2014
JD JDListed shares at Amman stock exchangeJordanian Electric Company 1,457,264 1,638,735 Irbid City Electric Company 35,647 42,549
1,492,911 1,681,284 Movements on Investments in financial assets at fair value through other comprehensive income through the year are as follow:
2015 2014JD JD
Beginning of year balance 1,681,285 1,834,325 Change in fair value )188,374( )153,041(
1,492,911 1,681,284
9.Company’s contribution in employees housing fundThis item represents amount transferred to the employees housing fund as contributions in the fund.
10.Inventory2015 2014
JD JDSpare parts, transformation stations› materials and transmission network 20,170,697 21,466,950Control and monitoring center materials 4,387,949 4,080,602Letters of credit 9,197,575 245,305Liquid gas inventory 9,293,772 - Others 22,707 18,925
43,072,700 25,811,782
11.Other debit balances2015 2014
JD JDFuel consumption and supply differences-Net 5,504,026 3,828,713Prepaid expenses 609,013 89,547Projects and studies for others 726,417 902,421Prepayments to suppliers 4,669,164 5,017,142Employees receivables 367,889 388,436 Others 106,877 82,420
11,983,386 10,308,679The item “Fuel consumption and supply differences –net” above represents the differences between fuel amounts supplied to generating companies paid by National Electric Power Company and quantities consumed by energy generating companies during the year.
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12.Accounts receivable, net2015 2014
JD JD
Sale of energy receivables(12-1) 392,587,571 341,111,197Joint Chiefs of Staff (Agains receipts as a contribution for projects under construction) 3,201,000 3,201,000
Insurance companies receivables- Aqaba and rehab accidents 4,478,620 4,465,763Egyptian Natural Gas Holding company 5,735,164 - Others 5,443,370 4,883,717Total 411,445,725 353,661,677
Allowance for doubtful receivables ) 12,990,953( ) 7,934,736(398,454,772 345,726,941
(12-1) Sale of energy receivables details are as following:2015 2014
JD JD
Jordan Electric Power Company 211,274,401 187,744,324 Electricity Distribution Company 90,232,942 65,124,950 Irbid District Electricity Company 55,910,885 57,423,596 Roadway lighting subscribers receivables 1,109,689 443,699 Wholesale subscribers receivables 28,720,724 25,490,135 Traibeel Borders Center 5,209,918 4,612,518 Jerusalem District Electricity Company 129,012 271,975
392,587,571 341,111,197
Movement on provision for impairment of trade receivables in as follows:2015 2014
JD JD
As of 31 January 7,934,736 7,890,139Increase during the year 5,056,217 44,597As of 1 December 12,990,953 7,934,736
As at 31 December 2015 trade receivables of JD 154,070,616 (2014: 117,470,392)were past due but not impaired, the ageing of these receivables are as follows:
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2015 2014JD JD
61-360 Days 145,624,068 106,675,081More than 360 Days 8,446,548 10,795,311
154,070,616 117,470,392
One of the receivables aged more than 360 days of JD 3.2 million relates to Joint Chiefs of Staff and has not been impaired as there is a collateralof JD 5 million presented in noncurrent liabilities classified as Subscribers’ contributions received on projects under construction.
13.Cash and cash equivalents2015 2014
JD JD
Cash at banks 5,258,692 265,784Cash on hand 134,051 93,673
5,392,743 359,457
14.Loans2015 2014
JD JD
Non-Current
Loans 1,371,567,427 623,056,0731,371,567,427 623,056,073
Current
Loans 289,375,373 548,411,637 Accrued portion 381,441,999 239,641,999
670,817,372 788,053,636 Total Loans 2,042,384,799 1,411,109,709
The accrued portion represents due premiums were paid by the ministry of finance.The carrying value of loans approximates fair value.The fixed interest rates for loans vary from 3.25% to 8.375 %.All loans above are guaranteed by the government of The Hashemite Kingdom of Jordan.
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The currency profile of the company’s loans as 31 December is as follows:2015 2014
JD JDJordan Dinars 1,415,495,035 766,940,787 U.S Dollars 556,812,000 560,561,999 Kuwaiti Dinar 38,301,276 48,621,186 Euro 1,681,436 1,974,368 SDR 30,095,052 33,011,368
2,042,384,799 1,411,109,708
15.Bonds payableBonds payable are presented as follows:Bonds of JD 150 million with maturity date 15 April 2017 with interest rate 7.750% during the year ended 31 December 2015.Bonds of JD 150 million with maturity date 26 April 2017 with interest rate 7.724% during the year ended 31 December 2015.All bonds are issued by the Government of the Hashemite Kingdom of Jordan using the National Electric Power Company name and guaranteed by the Government of the Hashemite Kingdom of Jordan.
16.End of service indemnity provision2015 2014
JD JDBeginning of year balance 6,897,349 6,435,255Provided during the year 344,070 994,610Paid during the year ) 495,414( ) 532,516(
6,746,005 6,897,349
17.Subscribers’ contributions received on projects under construction2015 2014
JD JD
Adjustment of 400 K.V line project-special forces 5,000,000 5,000,000AL-Qwireh conversion station project 4,083,333 4,083,333AL-Shedeyeh station expansion project (Gamma and Indian) 3,506,667 3,506,667Maan station conversion project 4,513,371 4,182,371Tafilah station conversion project 3,000,000 -
20,103,371 16,772,371
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18.Income tax provision
Income tax
AmmanThe Company reached final settlement with income and sales tax department until the end of year 2013.
AqabaThe Company reached final settlement with income and sales tax depart for income tax until the end of year 2010.The total accepted accumulated losses have reached JD 3.1 billion until the year 2013 and the company has not recognized deferred tax assets for the period due to uncertainty about realization of taxable profit in the near future.
Sales taxThe Company reached final settlement with income and sales tax department until the end of year 2013.
19.Other credit balances2015 2014
JD JD
Accrued interest 48,569,608 39,292,628Contractors’ retentions 6,597,272 7,247,864Subscribers’ contributions deposits 6,631,827 6,631,827Fils AL-reef deposits 2,097,513 4,236,590Prepayments on projects and studies for other parties 1,191,526 2,731,303Others 910,098 786,871Deferred grants 156,668 214,136
66,154,512 61,141,219
20.Accounts payable2015 2014
JD JD
Ministry of Finance 2,860,061,242 2,860,061,242Purchase of fuel and energy (20-1) 134,912,309 524,783,551Purchase of natural gas (20-2) 47,653,759 2,580,580Other payables 9,075,606 7,123,556
3,051,702,916 3,394,548,929
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20-1) Details of purchase of fuel and energy are as follows:2015 2014
JD JDAl-Samra Electric Power Company 36,802,781 124,847,808Central Electricity Generating Company 57,050,622 241,874,484Jordan Petroleum Refinery Company-Fuel 5,207,827 113,066,463Al-Qatrana Electric Power Company 6,834,588 7,059,814Amman East Station Power Plant 5,328,755 5,396,616Amman East Power Plant-Levant 7,277,623 9,245,760Amman-Asia Electricity Generating Company 10,930,979 18,679,957Jordan India Fertiliser Company 20,743 5,836Egyptian Electricity Transmission Company 1,177,889 4,105,672Jordan Wind Project Company-Tafilah 3,919,899 - Shamsuna Company 20,842 - Indo-Jordan Chemicals Company 260,241 217,108Jordan Valley Authority-King Talal Dam 79,520 284,033
134,912,309 524,783,551
20-2) Details of purchase of natural gas are as follows:2015 2014
JD JD
Jordanian Egyptian Fajr for Natural Gas Transmission and Supply 11,873,373 1,532,676 Shell international trading 26,304,287 - Others 9,476,099 1,047,904
47,653,759 2,580,580
21.Bank facilitiesCurrency Facility limit Interest rate 2015 2014
JD % JD JDBank of Jordan Jordan Dinar 10 million 4.25 32,310,228 - Cairo Amman Bank U.S Dollars 5 million 2.95 14,696,767 - Cairo Amman Bank Jordan Dinar 5 million 5.50 4,428,707 6,882,358 Housing Bank for Trade and Finance Jordan Dinar 5 million 6.25 5,196 4,997,071 Bank of Jordan U.S Dollars 5 million 4 - 3,532,920 Bank al Etihad U.S Dollars 10 million 3.75 - 4,248,000 Bank al Etihad Jordan Dinar 7.5 million 7.25 - 7,500,000 Total 51,440,898 27,160,349
All the above bank facilities are guaranteed by the company’s assets.
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22. Equity
Share capitalThe total amount of share capital is divided into 230 million shares where the value is 1JD per share.Accumulated lossesThis item includes all profits and losses and dividends.Statutory reserveThis item represents the accumulated reserves from prior years at annual rate 10% of year profits before tax and fees as per Companies Law. This amount is not for distribution to shareholders. The company may stop deducting statutory reserves until it reached 25% of the capital.However, the company may with the approval of the General Assembly, continue to deduct this annual ratio until this reserve equals the capital of the company in full.
Voluntary reserveThis item represents the accumulated reserves from prior years at annual rate 20% of year profits as per Companies Law
Special reserveThe General Assembly of a public shareholding company can allocate not more than 20% annually of the profit as special reserve based on a proposition by its board of directors to use it for contingencies, expansion, or strengthening, the company’s financial position and facing potential risks to agree with the requirements of the Jordanian Companies Law.
Treasury rightsThis item represents the balance of principals and interests on certain loans that are credited on treasury rights account presented under equity as stated in the loans agreements. The balance of this item does not represent any liability to the company.
23.Sales of energy revenues2015 2014
Quantity ofenergy sold
Average price Total Quantity ofenergy sold
Average price Total
Megawatt/hour Fils/kilowatt JD Megawatt/hour Fils/kilowatt JD
Jordan Electric Power Company 10,880,096 79/823 868,481,666 10,304,458 79/108 815,169,802 Irbid District Electricity Company 3,064,173 69/297 212,339,106 2,840,381 65/515 186,087,386 Electricity Distribution Company 3,337,838 79/113 264,065,607 3,159,990 70/772 223,638,473 Wholesale subscribers 881,237 177/818 156,699,416 1,001,710 159/214 159,485,806 Jerusalem District Electricity Company 41,389 101/874 4,216,456 34,301 104/136 3,571,947 Egyptian ElectricityTransmission Company 2,990 66/007 197,361 22,785 122/039 2,780,660
Traibeel Borders Center 5,259 113/600 597,400 6,651 113/600 755,508 18,212,982 82/721 1,506,597,012 17,370,276 80/108 1,391,489,582
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24.Purchases of energy2015 2014
Quantity of energy Purchased
Average price TotalQuantity of energy Purchased
Average price Total
Megawatt/hour
Fils/kilowatt JD Megawatt/hour Fils/kilowatt JD
Central Electricity Generating Company 6,016,101 84/224 506,700,367 7,497,565 134/037 1,004,949,528 Al-Samra Electric Power Company 5,271,590 78/074 411,571,483 4,407,803 157/473 694,111,285 Amman East Power Plant 1,792,226 73/478 131,689,971 1,945,734 126/993 247,093,667 Al-Qatrana Electric Power Company 2,237,777 75/504 168,960,502 1,483,862 153/591 227,908,557 Amman-Asia Electricity Generating Company 1,377,623 131/063 180,555,306 1,127,859 112/253 126,605,854 Amman East Power Plant (Levant) 1,100,191 113/837 125,242,128 774,012 109/422 84,693,692 Egyptian Electricity Transmission Company 603,788 58/214 35,148,651 434,880 88/992 38,700,825 Jordan Wind Project Company-Tafilah 120,953 56/649 6,851,879 - - - Shamsuna Company 740 30/009 22,207 - - - King Talal Dam and Indo-Jordan Chemicals Company 20,080 33/616 675,010 18,683 32/836 613,476
18,541,069 84/538 1,567,417,504 17,690,398 137/062 2,424,676,884
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25.Administrative and operating expenses
2015 2014JD JD
Wages and salaries 17,380,916 16,349,886Company›s contributions(social security, savings, health and life insurance) 4,372,295 3,995,207Assets insurance 1,273,754 2,338,538Impairment of trade receivable 5,056,217 44,597Licensing fees-electricity regulatory commission 1,727,991 1,302,620Security 579,793 553,349End of service compensation 344,070 994,610Professional and consultancy fees 502,573 634,021Stamps and university fees 6,912 186,227Impairment of slow moving inventory 544,431 683,267Water, electricity and fuel 275,543 220,472Miscellaneous 112,152 152,190Travel and per-diems 151,330 130,622Cleaning 132,334 137,608Advertising and marketing services 60,655 51,905Communication 73,182 66,618Stationery and printings 50,273 51,365Subscriptions 61,684 36,815Training 50,610 39,012Vehicles registration and licensing 32,176 30,836Board of directors› transportation and representation 46,800 48,513Seminars and conferences 20,589 19,527Hospitality 47,842 42,197
32,904,122 28,110,002
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26.Other revenues2015 2014
JD JD
International services revenues-net 2,939,187 1,766,966International bank grant-wind support plan 2,882,065 - Credit bank interests 286,648 702,668Land rentals 53,750 53,750Sale of tenders copies 36,715 43,000Dividends 18,438 44,288Compensations from insurance companies 370,165 134,838Amortization of deferred revenues 63,262 62,973Amman-Asia penalties revenue - 11,537,500Gain on disposal of warehouses materials 47,121 107,318Gain from sale of property and equipment 9,999 15,998Others 23,684 53,305
6,731,034 14,522,604
27.Other expenses2015 2014
JD JD
Housing and rest areas expenses-net 51,844 73,888Company›s contribution in roadway lighting - 8,916Others 35,778 48,737
87,622 131,541
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28.Previous years settlements of accountsThis item represents amounts transferred to the statement of comprehensive income as a results of the sett lomentbetween the company and those who are dealing with the company, the net of these settlements as follows:
2015 2014JD JD
Jordanian Egyptian Fajr Company )361,121( 164,617Central Electricity Generating Company )180,540( 1,087,283Amman-Asia Company )142,000( - Indian Company - 4,534Al-Samra Electric Company - 55,806
)683,661( 1,312,240
29.Loss per share2015 2014
JD JD
Loss for the year )233,146,939( )1,179,416,647(Weighted average number of shares 230,000,000 230,000,000Loss per share )1.014( )5.128(
30.Contingent liabilities
GuaranteesThe company has contingent liabilities through bank guarantees amounting to JD 28,609,202 as at 31 December 2015 without cash deposits.
Legal CasesAs mentioned in the company’s lawyer letter, there are legal cases raised by others against the company regarding reimbursements related to towers, lines, properties, employment and other cases. As the nature of the cases filed against the company is a decrease in value claimsand These claims are not properly estimated, according to the company’s lawyer the total expected amount against the company is JD 20 million and the amounts of compensations to be paid approximate to JD 11 million during the year of 2016.
Late feesThe company is liable for late fees that are not recognizes due to the difficulty of estimating their amounts, and the uncertainty of the likelihood of their occurrence which approximate JD 63.8 millionin contrast, there in a late fees to the paror of the company in the amount of JD 47.1 million approximately.
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31.Segment reporting2015 2014
Amman Aqaba Total Amman Aqaba Total
Operating revenues Note JD JD JD JD JD JD
Sales of energy revenues )23( 1,455,296,410 51,300,602 1,506,597,012 1,345,705,138 45,784,444 1,391,489,582
Other energy revenues 135,401 4,766 140,167 50,616 1,727 52,343
Total operating revenues
1,455,431,811 51,305,368 1,506,737,179 1,345,755,754 45,786,171 1,391,541,925
Less: Operating expenses
Purchases of energy )24( 1,514,125,310 53,292,194 1,567,417,504 2,344,662,547 80,014,337 2,424,676,884 Cost of delivering gas to new energy stations
7,923,872 278,894 8,202,766 4,909,272 167,535 5,076,807
Maintenance expenses 2,842,949 100,062 2,943,011 2,231,302 76,145 2,307,447
Administrative and operating expenses )25( 31,785,382 1,118,740 32,904,122 27,183,845 926,158 28,110,003
Depreciation )6( 24,975,457 879,053 25,854,510 25,452,111 868,583 26,320,694 Total operating expenses
1,581,652,970 55,668,943 1,637,321,913 2,404,439,077 82,052,758 2,486,491,835
Operating loss )126,221,159( )4,363,575( )130,584,734( )1,058,683,323( )36,266,587( )1,094,949,910(Previous years settlements of accounts
)28( )660,417( )23,244( )683,661( 1,268,936 43,304 1,312,240
Net foreign exchange gain 4,775,018 28,367 4,803,385 3,864,638 25,992 3,890,630
Other revenues )26( 6,731,034 - 6,731,034 14,522,605 - 14,522,605 Other expenses )27( )87,622( - )87,622( )131,543( - )131,543(Finance expenses )109,290,310( )3,846,657( )113,136,967( )100,478,679( )3,428,952( )103,907,631(Loss for the year )224,753,456( )8,205,109( )232,958,565( )1,139,637,364( )39,626,243( )1,179,263,607(
32.Comparative numbersSome of the separate financial statements balances for year 2014 have been reclassified and adjusted to be in accordance with separate financial statements for the year ended 31 December 2015, reclassification or adjusting did not have any effect on profit or equity for the year 2014.
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Design & Print:
Preparation & Follow-up:Power System Planning Dept - Statistics
and Comparative planning Section
