Awraq Investments www.awraq.com Tel: 962 6 550 ... - Menafn.com

Figure 1: Ownership Structure
Social
Security
9.708%
Free Float
65.003%
Jordan
Electric
Power Co.
Employees
Savings
1.043%
Othman
Bdeir
7.323%
Source: Securities Depository Center
Ticker: JOEP JR (Bloomberg)
Last (19-March-2009): JD 3.18
52 Week Low (24-Nov-08): JD 2.77
52 Week High (13-Jul-08): JD 7.41
Target Price: JD 3.11
Serene Zawaydeh
Head of Research
Awraq Investments
szawaydeh@awraq.com
Greater
Amman
Municipality
2.557%
Jordanian
Insurance
Company
1.153%
Individuals
9.625%
Jordan
Worsted
Mills
2%
Jordan
Islamic
Bank
1.588%
Jordanian Electric Power Company (JEPCO)
Recommendation: HOLD
March 22, 2009
The Jordan Electric Power Company (JEPCO, Ticker: JOEP) is one of three companies in charge of distributing electricity in
Jordan. It distributes electricity in its concession area which includes: Amman, Zarqa, Madaba, and Balqa governorates
except for Central Jordan Valley Valley. In terms of population, opulation, JEPCO's concession area accounts for 3.6 million people or 63% of
the total population of Jordan Jordan. . Each distribution company covers an area that is not covered by either of the two companies.
Therefore, there is no actual competition between thes these e three companies in served areas. JEPCO has a 50 year concession
which will expire in 2012. However, this is not expected to affect the company’s operations due to its effective monopoly in
its coverage area.
JEPCO’s paid up capital stood at JD 70 mill million ion in 2008, up from JD 40 million in 2003. The company obtained the approval of
the Ministry of Trade rade and Industry to increase its capital to JD 100 million on July 1, 2008. The capital increase will be
gradual, and the company might have a strategic inve investor stor in the future. Currently the Social Security Corporation holds the
highest percent ownership in the company (9.708%). Free float constitutes 65% of the company’s total shares, which is
much higher than the country free float average.
Please refer to o page 10 of this report, for an overview of the structure of the electricity sector in Jordan.
Subscribers
JEPCO’s EPCO’s subscriber market share stood at 65% of total subscribers with electricity distribution companies in 2007. JEPCO’s
subscribers increased by 5.6% in 2007 to reach 824,449 compared to 780,700 in 2006. Subscribers in Amman constituted
69% of total subscribers in 2007, followed by Zarqa (19%); Madaba (5%); Baqaa (4%) and Salt (3%). According to National
Electric Power Company, JEPCO’s residenti residential customers stood at 689,722 in 2007, , constituting 83% of the ccompany’s
subscriber base that year year. . Commercial subscribers constituted 14% of JEPCO’s subscribers, followed by industrial subscribers
(1.2%), street lighting (0.5%) while agricultural customer customers constituted 0.2% 2% of JEPCO’s subscriber base. Economic activity is
concentrated in JEPCO’s coverage area, which includes the Capital, Amman. Figure 19 on page 11 provides the distribution
of subscribers by segment for the distribution companies. It shows concentration of the population, along with industrial,
commercial activities and street lighting in JEPCO’s coverage area, which includes the Capital, Amman.
Revenues
JEPCO’s revenues grew at a Compounded Annual Growth Rate (CAGR) of 13% between 2003 and 2007. Revenues increased
from JD 192 million in 2003 to reach JD 315 million for 2007. Revenues for the first 9 months of 2008 reached JD 305 million,
representing a 34% increase over 9M 2007 revenues, which stood at JD 227.7 million. Residential customers generated 43%
of revenues in 2007 and stood at JD 130.3 million. The commercial segment generated JD 774
million in 2007 (24.7% of total
revenues); followed by the industrial segment which generated JD 56 million (18.5% of revenues); water pumping generated
JD 16.9 million (5.5% of revenues revenues); hospitals and worshipping places generated JD 12.4 million (4.1% of revenues revenues); hotels
generated JD 8.5 million (2.8% of revenues) revenues); street lighting generated JD 2.7 million (0.9% of revenues revenues); TV and radio
broadcasting generated JD 0.46 million (0.2% of revenues); ); while other estimated fees and non read meters meters’ revenues
amounted to JD 1.2 million (0.4% of revenues).
Awraq Investments www.awraq.com Tel: 962 6 550 3803 Fax: 962 6 550 3801 Toll Free: 080022248 P.O. Box 925102 Amman 11110 Jordan

Jordanian Electric Power Company (JEPCO)
Cost of sales represents a primary item on the company’s income statement. This represents the cost of bought power from National Electric
Power Company (NEPCO). It accounted for 80% of revenues in 2003, and 87% of revenues in the first 9 months of 2008. Other operating expenses
accounted for 2.7% in the first 9 months of 2008. The gross profit margin stood at 10.3% for the first 9 months of 2008, compared to 12.2% in 9M
2007. Net profit amounted to JD 8.6 million in 2003 with a net profit margin of 4.6%. It increased to JD 11 million in 2007, with a net profit margin
of 3.8%. In the first 9 months of 2008, net profit stood at JD 9 million with a net profit margin of 3%.
The company reported preliminary revenues for 2008 of JD 426.23 million, compared to JD 315 million in 2007. This amount represents revenues
from sales of energy; investment income; net other revenues; non operating revenues; write down of investments; and foreign exchange gain.
The company has a non operating revenue item of JD 7.25 million from selling land to Greater Amman Municipality.
Electricity Tariffs
The Electricity Regulatory Commission (ERC) sets wholesale prices that electricity companies pay to NEPCO, and tariffs that end users pay to the
distribution companies. In line with the increase in international oil prices in 2007, the ERC increased the wholesale prices that electricity
distribution companies have to pay to NEPCO on July 1, 2007. Daytime and night time wholesale tariffs increased by 1.11 Fils/KWh, to reach 35.41
and 25.36 Fils/KWh respectively. This led to an increase in the cost of purchased power for JEPCO. In the last quarter of 2007, purchased power
accounted for 89% of total revenues for the quarter, compared to 78% in 2004. Eight months later, on March 14, 2008, the ERC implemented an
increase to prices that end users pay to electricity companies. The average increase to prices for end users stood at 34% versus an average of 3.9%
increase on tariffs for electricity companies. (Please refer to the Appendix for details on tariffs.)
The increase in electricity tariffs was translated into in an increase in the ratio of revenues to sold power. The ratio was 46.9 in 2003 and increased
to 50.4 in 2007. The increase in usage is displayed in the increase in ratio of sold power per subscriber, which increased from 6 in 2003 to 7.3 in
2007. As a result of the increase in usage and tariffs, the electricity monthly Average Revenue per User (ARPU) for all segments of users combined
increased from JD 24 in 2003 to JD 31.5 in 2007.
We calculated the electricity ARPU based on revenues and the number of subscribers by segment reported by NEPCO, and the revenues by
segment reported by JEPCO. The ARPU indicator is a common indicator in the telecom industry. Results show an increase in ARPU by segment,
which is due to an increase in consumption in addition to an increase in tariffs. The agricultural segment has the highest ARPU compared to other
segments. The Ministry of Agriculture is one of JEPCO’s subscribers, and it is in charge of pumping water to customers.
There is a gap between the bought power from NEPCO, and the sold power to end users. The ratio of sold power to bought power declined from
89% in 2003 to 85% in 2007. In addition to losses in the system, there was an increase in electricity theft, which results in unpaid consumption of
electricity. This accompanied the increase in oil prices, which led to substitution of traditional heating based on oil products, to electric
heating. The percent of lost power reached 15.2% in 2007 compared to 12.4% in 2006. Furthermore, there is a difference in growth of bought
power and sold power. Sold power readings are taken between mid of the month and the following month, while the bought power meters are
taken on the first day of each month.
Awraq Investments www.awraq.com Tel: 962 6 550 3803 Fax: 962 6 550 3801 Toll Free: 080022248 P.O. Box 925102 Amman 11110 Jordan
[2]

Figure 2: Number of JEPCO’s Customers by Segment
2003 2004 2005 2006 2007
Domestic 538,839 570,180 605,638 640,594 689,722
Industrial 9,082 9,345 9,706 9,957 10,230
Commercial 98,279 102,794 107,919 113,770 119,010
Water Pumping 970 1,040 1,074 1,250 1,340
Governmental 5,762 5,998 6,489 6,864 4,147
Others 7,298 7,613 7,874 8,265 -
Total
Source: NEPCO
660,230 696,970 738,700 780,700 824,449
Figure 4: Average Revenue per User by Segment
ARPU (JD) 2004 2005 2006 2007
Residential 13 14 15 16
Commercial 47 50 55 60
Industrial 348 395 419 463
Water pumping 1064 992 998 1082
Government, Street lighting 26 29 32 42
Other customers (hospitals, religeous) 104 106 115
Source: NEPCO, JEPCO, Awraq Investments
Figure 6: Average Sold Power per Customer (MW)
2003 2004
Residential and public buildings 3.06 3.22
Commercial, Hotels, Broadcasting 8 9
Industrial 99.30 106.79
Water pumping 352 309
Government, Street lighting 17.24 18.32
Other customers (hospitals, religious)
Source: JEPCO
23 21
2005 2006 2007
3.30 3.61 3.65
9 10 11
113.08 129.99 133.81
291 261 290
18.47 19.64 31.99
20 19
397 448
Jordanian Electric Power Company (JEPCO)
Figure 3: Revenues by Segment
Residential
Revenues Commercial, Hotels, Hospitals, Religious, Broadcasting
Industrial
Agricultural
140
130
Governmental, Street lighting
115
120 Others, unread meters
99
96
100
89
79
84
80
60
67
73
60
45 49
56
34 39
40
20
12 13 13 14 17
1 0.3 2 0.4
2 0.7
3 2.7 3 1.3
-
Sold Power Bought Power Sold power / Bought Power
8000
7000
6000
5000
89%
90%
4907
4396
88% 6157
88%
5431
4793 5393
7113
6030
90%
89%
88%
87%
4000
86%
3000
84.8%
85%
Awraq Investments www.awraq.com Tel: 962 6 550 3803 Fax: 962 6 550 3801 Toll Free: 080022248 P.O. Box 925102 Amman 11110 Jordan
JD Million
Source: JEPCO
Gigawatt Hour (GWH)
2000
1000
0
2003 2004
Figure 5: Sold Power versus Bought Power
Source: JEPCO
2005 2006 2007
2003 2004 2005 2006 2007
84%
83%
82%
[3]

Jordanian Electric Power Company (JEPCO)
Balance Sheet
Total assets stood at JD 421.7 million at the end of September 2008, representing a 15.6% growth over total assets for September 2007 which
stood at JD 364.7 million. Total assets include subscriber contributions and rural fils contributions after depreciation. The company reports
subscriber contributions at both sides of the balance sheets under non current assets and non current liabilities. In order to address customers’
needs for electricity that is above the specific load provided by the network, subscribers pay amounts required to install assets such as: transformer
stations, cables, electric poles and others. Should inventory be used for the project, the amount used moves into projects in progress. Once 80% of
the project is completed, the amounts move into subscriber contributions, which are depreciated at 4% annually. The increase in construction
activity in 2006 and 2007 was reflected in an increase in subscriber contributions assets. Subscriber contributions assets amounted to JD 63 million
in 2003, constituting 25.4% of total assets, and reached JD 124 million at the end of September 2008, constituting 29.4% of total assets. Subscriber
contributions are not refunded to customers.
JEPCO has a liquidity challenge, as current assets do not cover current liabilities. The gap between current assets and current liabilities has been
widening over the years, leading to a negative working capital. The current ratio, calculated by dividing total current assets by total current
liabilities, is less than 1. It decreased from 75% in 2003 to 60% at the end of September 2008. The company’s current assets stood at JD 116.7
million at the end of September 2008 compared to current liabilities of JD 195 million. The quick ratio stood at 0.46 at the end of September 2008.
The net working capital ratio stood at -19%; and the cash flow liquidity ratio was 25.6%.
A key driver for the company’s excess current liabilities, is the “subscribers’ refundable deposits”. The amount is refunded to the subscribers when
the service is disconnected. Taking into consideration that electricity is a vital utility with the company being the only distributor for electricity in its
coverage area; the amounts refunded are expected to be limited if not zero. Should a subscriber disconnect the service for moving to another
place, another subscriber would request reconnection of the service and deposit the amount required. Consequently, we deducted this amount
from current liabilities when calculating the adjusted working capital. This had a positive impact on working capital. However, for 2007 and 9M
2008, the working capital is still negative even after deduction of the refundable deposit.
Cash Flow Statement
Cash flow from operations reached JD 42 million for the first 9 months of 2008, compared to JD 32 million in 2007. Cash flow from investments
increased in the first 9 months of 2008, to reach JD 41 million, compared to JD 32 million for 2007. Cash flow from financing activities amounted to
JD 8.2 million in the first 9 months of 2008, versus JD 4.4 million for end of 2007.
Jordan Electric Power Company has been maintaining its dividend distribution policy. The company distributed JD 0.12 dividends per share for 2007
in addition to 6.06% as stock dividend. On March 3, 2009, the company announced that it will distribute cash dividends amounting to 10% of the
nominal value (JD 0.10 per share) for the year 2008, in addition to 9% stock dividends. According to the company’s concession agreement,
dividends per share including income tax should be between 7.5% and 16% of the nominal value. The dividend yield is 3.14% as of March 19, 2009.
Awraq Investments www.awraq.com Tel: 962 6 550 3803 Fax: 962 6 550 3801 Toll Free: 080022248 P.O. Box 925102 Amman 11110 Jordan
[4]

Figure 7: : JEPCO’s Revenues, Net Profit and Net Profit Margin
JD Million
Source: JEPCO
Figure 9: Assets, Liabilities and Shareholders Equity
JD million
350
300
250
200
150
100
50
Total Assets Total Liabilities Shareholders Equity
500
400
300
200
100
-
-
Source: JEPCO
Total Revenues Net Profit Net Profit Margin
4.6% 4.7% 4.7%
186 209 232
248
186
278
297
5.9%
269
316
208 214 225
62 70 82 91
304
3.8%
9 10 11 16 12
2003 2004 2005 2006 2007
362
305
266
3.0%
422
327
96 95
2003 2004 2005 2006 2007 9M 2008
9
9M
2008
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Jordanian Electric Power Company (JEPCO)
Figure 8: JEPCO’s Quarterly Revenues and Cost of Bought Power
60.8 63.0
75.4 80.0 72.3 69.9
51.8 52.5 60.2 57.8 63.0 85.5 87.3
69.9 76.1
60.4
97.6
88.2
78.5
70.1 67.4
60.4
Awraq Investments www.awraq.com Tel: 962 6 550 3803 Fax: 962 6 550 3801 Toll Free: 080022248 P.O. Box 925102 Amman 11110 Jordan
JD million
140
120
100
80
60
40
20
0
Source: JEPCO
50
40
30
20
10
0
-10
-20
-30
-40
-50
Source: JEPCO
Revenues
Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08
Figure 10: Cash Flow
Cash Flow Operating
29
38
32
Bought Power
120.3
Investing Financing
98.8
-9.9
2003
-10.9
2004
-8.3
2005
-11.1 11.1
2006
-6.6
2007 9M 2008
-16.4 -18.2
-25.5
-32.0
13
32
4.4
36
-41.8
8.2
[5]

Figure 11: Financial Ratios
Ratio Sept 08 Sept 07
Current Ratio 0.60
Quick Ratio 0.46
Net Working Capital Ratio -19%
Cash flow liquidity ratio 25.6%
Return on Assets 2.7%
Return on Equity 11.1%
Profit Margin (9m) 3.0%
Earnings Per Share (trailing 12m) 0.106 0.143
Asset Turnover Ratio 78%
Account Receivables Turnover Ratio 5.32
Total Debt to Equity Ratio 3.44
Interest Coverage Ratio 76%
Subscriber Contributions / Total Assets 26.4%
Subscriber refundable deposits/ Current liabilities 26.9%
Source: JEPCO, Awraq Investments
Figure 13: Capital Expenditure
Million JD
60
50
40
30
20
10
-
Source: JEPCO
19.00
22.70
CAPEX
43.42
2004 2005 2006
50.36
2007
0.66
0.56
-15%
40%
4.2%
15.4%
4.4%
67%
5.03
2.89
8.82
28%
29.5%
Jordanian Electric Power Company (JEPCO)
Figure 12: Working Capital and Adjusted Working Capital
9.57 7.39 7.59 3.98
2003 2004 2005 2006 2007 9M 2008
-22.15
-27.32 -30.53
-39.24 39.24
Awraq Investments www.awraq.com Tel: 962 6 550 3803 Fax: 962 6 550 3801 Toll Free: 080022248 P.O. Box 925102 Amman 11110 Jordan
Millions
Current Assets - Current Liabilities
Current Assets - Current Liabilities Excluding Refundable Deposits
20
-
(20)
(40)
(60)
(80)
(100)
Source: JEPCO, Awraq Investments
-56.95
-9.17 -25.72
-78.17
[6]

Share Price Movement
8
7
6
5
4
3
2
1
0
1-Jan-08
18-Jan-08
4-Feb-08
21-Feb-08
9-Mar-08
26-Mar-08
12-Apr-08
29-Apr-08
16-May-08
2-Jun-08
19-Jun-08
6-Jul-08
23-Jul-08
9-Aug-08
26-Aug-08
12-Sep-08
29-Sep-08
16-Oct-08
2-Nov-08
19-Nov-08
6-Dec-08
23-Dec-08
9-Jan-09
26-Jan-09
12-Feb-09
1-Mar-09
18-Mar-09
Source: Bloomberg
JOEP JR Equity Amman Stock Exchange Index
6000
5000
4000
3000
2000
1000
0
Jordanian Electric Power Company (JEPCO)
JEPCO’s share price movement was the most volatile in 2008 compared to previous years. The share price recorded its highest level on July 13,
2008, closing at JD 7.41. Following the decline in regional and international stock prices as a result of the financial crisis, the share lost 63% of
its highest value by November 24, 2008, closing at JD 2.77. We believe that the rise in the share price was not related to the fundamentals of
the company, but was rather an effect of the regional boom in stock prices. The company’s announcement that it will be distributing dividends
had a positive impact on the share price. The share closed at JD 3.17 on March 18, 2009.
Figure 14: JEPCO’s Share versus Amman Stock Exchange Index
Figure 15: Jordanian Electric Power Company’s Share Price
Source: Bloomberg
Awraq Investments www.awraq.com Tel: 962 6 550 3803 Fax: 962 6 550 3801 Toll Free: 080022248 P.O. Box 925102 Amman 11110 Jordan
JD
8
7
6
5
4
3
2
1
0
Jordanian Electric Power Company
Annual High and Low Prices
1.77
1.11
2.77
1.76
4.06
2.77
3.64
2.39
4.15
2.44
7.41
2.77
3.21
2.95
2003 2004 2005 2006 2007 2008 2009
[7]

JEPCO’s Potential Peers
Jordanian Electric Power Company (JEPCO)
The companies we considered are: Saudi Electricity Company, Abu Dhabi National Energy Company, Qatar Electricity and Water, and Irbid District
Electricity. JEPCO distributes electricity to specified regions in Jordan, and not to all the country, and it does not generate electricity. As for the other
companies:
• Saudi Electricity Company (Ticker: SECO AB): Is responsible for generation, transmission, and distribution of electricity in Saudi Arabia.
• Abu Dhabi National Energy Company (Ticker: TAQA) is a Global energy company with operations in power generation, water desalination,
upstream oil/ gas, pipelines, gas storage and LNG regas. Its revenues extend outside UAE. TAQA is investment arm of Abu Dhabi Water and
Electricity Authority (ADEWA), which produces, transmits, and distributes water and electricity in Abu Dhabi to more than 1.4 million customers.
• Qatar Electricity and Water (Ticker: QEWS QD) Generates electricity and desalinates water. The company sells its electricity and water to the
government
• Irbid District Electricity (Ticker: IREL JR) distributes electricity in the northern part of Jordan. Its share price increased after it was acquired by
Kingdom Electricity Company, a subsidiary of Jordan Dubai Capital). It has a paid up capital of JD 4 million in 2007. Its share price closed at JD
7.35 on March 4, 2009.
Based on the above, we excluded the P/E, P/BV, and EV/EBITDA peer analysis, due to differences in size and operation for considered possible peers
with operations including electricity distribution.
Figure 16: JEPCO’s Stock Price versus Peers
JD, SR, AED
18
16
14
12
10
8
6
4
2
0
1/1/2008
TAQA
1/22/2008
2/12/2008
Source: Bloomberg
Saudi Electricity
JEPCO
3/4/2008
3/25/2008
4/15/2008
5/6/2008
5/27/2008
6/17/2008
7/8/2008
7/29/2008
8/19/2008
Qatar Electricity and Water
9/9/2008
9/30/2008
Irbid District Electricity
10/21/2008
11/11/2008
12/2/2008
12/23/2008
1/13/2009
2/3/2009
2/24/2009
3/17/2009
Awraq Investments www.awraq.com Tel: 962 6 550 3803 Fax: 962 6 550 3801 Toll Free: 080022248 P.O. Box 925102 Amman 11110 Jordan
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
100 QR
[8]

Valuation
Our valuation for JEPCO is based on the Discounted Cash Flow model and the Dividend Discount Model.
Jordanian Electric Power Company (JEPCO)
Revenues from energy sales are expected to increase by 10% in 2009. We expect the company’s gross profit margin to improve along with a decline
in cost of purchased power as a percent of revenues. This is due to the higher increase in tariffs to end users compared to the increase in tariffs paid
to NEPCO. The company’s capital is expected to be JD 80 million for 2009, and will gradually increase to reach JD 100 million in 2011.
Capital expenditure stood at JD 19 million in 2004 and JD 22 million in 2005. There was a significant increase in CAPEX in 2006, along with the
increase in construction projects. CAPEX reached JD 43.4 million in 2006 and JD 50.36 million in 2007. Due to the decline in real estate projects as a
result of the current financial crisis, CAPEX is expected to go back to JD 25 million levels between 2009 and 2013. The company obtained a 3 year
JD 15 million loan in 2008.
The company had previously received a claim from the sales tax department for JD 7,343,070, with twice the amount as a fine (JD 14,686,141). The
company objected and the case was brought to courts. So far the case is in favor of JOEP. The company received an adjusted sales tax claim, which is
91% below the original value of the claim. The adjusted claim is JD 627,768, in addition to twice the amount as a fine (JD 1,255,536).
Based on the Discounted Cash flow model, the long term fair of JOEP is JD 3.79. This is based on a cost of equity of 11%, weighted average cost of
capital of 9% and terminal growth rate of 3%. The Dividend Discount Model yielded JD 1.5 per share. Applying a weight of 70% to the DCF model and
30% to the DDM model, we obtained a weighted fair value of JD 3.11. This is 2.3% below the share price on March 19, 2009, which closed at JD 3.18.
The share price is subject to potential dilution, given the upcoming stock dividend which is expected to be approved during the General Assembly
meeting which will be held on April 29, 2009.
Figure 17: Valuation
Model
Ke = 11%, WACC = 9%, G=3%
Valuation (JD) Weight
Weighted
Valuation (JD)
DCF 3.79 70% 2.66
DDM 1.50 30% 0.45
Valuation Price 3.11
Date 19/3/2009
JEPCO’s Share Price 3.18
Valuation vs Market Price %
Source: Awraq Investments
-2.3%
Figure 18: Sensitivity Analysis
Terminal Growth
Rate
Source: Awraq Investments
Based on this valuation, our recommendation for Jordanian Electric Power Company is HOLD.
Weighted Valuation (70% DCF, 30% DDM)
Cost of Equity 12.0% 11.0% 10.0% 9.0%
4% 3.01 3.49 4.12 5.01
3% 2.73 3.11 3.60 4.25
2% 3.71 2.81 3.20 3.71
Awraq Investments www.awraq.com Tel: 962 6 550 3803 Fax: 962 6 550 3801 Toll Free: 080022248 P.O. Box 925102 Amman 11110 Jordan
[9]

Structure of the Electricity Sector in Jordan
Jordanian Electric Power Company (JEPCO)
The electricity sector in Jordan is divided into three main parts: Generation, Transmission, and Distribution. Electricity generation and distribution
are privatized, while transmission will be kept within the government’s control.
Electricity Generation
• Central Electricity Generation Company (CEGCO). The company was privatized on October 10, 2007. The government sold 60% of its
share in the company to Enara, a company established by JD Energy & Infrastructure (JDE&I), the energy investment arm of Jordan Dubai
Capital.
• Samra Electric Power Generation Company (SEPGCO)
• Independent Power Providers
Transmission
National Electric Power Company (NEPCO): Is fully owned by the government. It is responsible for building, operation and maintenance of the
transmission system.
Distribution
Three companies are in charge of distribution:
• The Jordanian Electric Power Company (JEPCO, Ticker: JOEP JR): Distributes electricity in Amman, Zarqa, Madaba, and Balqa governorates
except for Central Jordan Valley. It has a 50 year concession which ends in 2012.
• Irbid District Electricity Company (IDECO, Ticker: IREL JR): Distributes electricity in Irbid, Mafraq, Jarash and Ajloun, apart from Northern
Jordan Valley and eastern areas. Its 50 year concession contract will end in 2011. The government sold 55.4% of its share to Kingdom
Electricity Company, a company established by JDE&I in partnership with Privatization Holding Company (PHC, Kuwait) and United Arab
Investors (Ticker: UAIC JR).
• Electricity Distribution Company (EDCO): Distributes electricity in the Southern, Eastern and Jordan Valley areas. The government sold
100% of its shares to Kingdom Electricity Company. This company is not listed on Amman stock exchange.
The distribution companies buy energy from NEPCO. JEPCO’s purchased energy increased by 15.5% in 2007 to reach 7104 GWh that year. This
represents 66% of NEPCO’s total energy sales to distribution companies in Jordan, which amounted to 10776.8 GWh. EDCO consumed 2022 GWh
(18.8% of energy sales), while IDECO consumed 1649.5GWh (15% of total energy sales). NEPCO’s sales to distribution companies comprise 91% of
total energy sales. NEPCO also sells electricity to large consumers and sells electricity to Egypt.
Awraq Investments www.awraq.com Tel: 962 6 550 3803 Fax: 962 6 550 3801 Toll Free: 080022248 P.O. Box 925102 Amman 11110 Jordan
[10]

Figure 19: Number of Electricity Subscribers by Type of Consumption & Distribution Companies’ Market Share (2007)
Distribution Company
Domestic Industrial Commercial Watar
Pumping
Jordanian Electric Power Company (JEPCO)
Awraq Investments www.awraq.com Tel: 962 6 550 3803 Fax: 962 6 550 3801 Toll Free: 080022248 P.O. Box 925102 Amman 11110 Jordan
Street
Lighting
Distribution
Companies
National Electric Power Company NEPCO 0.007 0.003
Thousands
0.003 0.01
Jordanian Electric Power
Company
JEPCO 689.72 10.23 119.01 1.34 4.15 824.45
Irbid District Electricity Company IDECO
244.67 3.27 31.42 1.60 1.64 282.59
Electricity Distribution Company EDCO 130.90 1.38 18.30 2.74 1.13 154.46
Source: NEPCO
Market Share
Total 1065.292 14.891 168.736 5.68 6.911 0.003 1261.513
JEPCO 64.7% 68.7% 70.5% 23.6% 60.0% 65.4%
IDECO 23.0% 22.0% 18.6% 28.1% 23.7% 22.4%
EDCO 12.3% 9.3% 10.8% 48.3% 16.3% 12.2%
Total Coverage area
Amman, Zarqa,
Madaba, Balqa
Irbid, Mafraq, Jarash,
Ajloun
South, East and Jordan
Valley
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Appendix
Figure 20: JEPCO’s Tariff Changes between 2004 and 2008
1/1/2004 to
2/4/2004
3/4/2004 to
31/5/2004
1/6/2004 to
8/7/2005
Jordanian Electric Power Company (JEPCO)
9/7/2005 to
13/3/2008
As of
14/3/2008
Latest
increase %
Increase in prices
(Fils)
1 Bulk Supply Tariffs
Peak Load (JD/Kw/Month) 2.40 2.40 2.40 2.40 2.40 0% 0
Day energy (Fils/KWh) 31.3 31.7 31.7 34.3 45.8 34% 12
Night energy (Fils/KWh) 21.2 21.7 21.7 24.3 35.8 47% 12
2 Retail Tariffs
Domestic (Fils/ Kwh)
First Block: From 1-160Kwh/Month 31.0 31.0 31.0 31.0 32.0 3% 1
a. Second Block: From 161-300Kwh/Month 55.0 57.0 57.0 59.0 71.0 20% 12
Third Block: From 301-500 KWh/Month 64.0 65.0 65.0 67.0 85.0 27% 18
Fourth Block: More than 500 KWh/Month
Falt rate Tariff for TV and Broadcasting
80.0 80.0 80.0 82.0 113.0 38% 31
b. stations Fils/ KWh 60.0 60.0 60.0 61.0 86.0 41% 25
c. Commercial (Fils/ KWh) 62.0 62.0 62.0 63.0 86.0 37% 23
d. Small Industries (Fils/ KWh)
Medium industries
38.0 39.0 39.0 41.0 49.0 20% 8
e.
Peak load (JD/Kw/Month)
Day Energy (Fils/ KWh)
3.1 3.1 3.1 3.1
30.0
3.8
46.0
24%
53%
1
16
Night Energy (Fils/ KWh) 20.0 36.0 80% 16
g. Water Pumping (Fils/ KWh) 38.0 38.0 38.0 40.0 41.0 3% 1
Hotels (Fils / KWh) * 60.0 59.0 59.0 60.0 86.0 43% 26
Peak load (JD/ KW/Month)
3.1 3.1 3.8 24% 1
Day Energy (Fils/ KWh) 55.0 56.0 81.0 45% 25
h. Night Energy (Fils /KWh)
44.0 45.0 70.0 56% 25
i. Street Lighting (Fils / KWh) |** 25.0 27.0 27.0 30.0 51.0 70% 21
j. Armed Forces (Fils/ KWh) 67.0 67.0 67.0 67.0 81.0 21% 14
k. Ports Corporation (Fils/ Kwh) 44.6 44.6 44.6 58.0 30% 13
Average
Notes
Monthly Minimum Charge
42.5 43.0 41.6 41.1 55.4 34% 14
a. Domestic (JD/ Month) 1.0 1.0 1.0 1.0 1.0 0% 0
b. Other Consumers (JD / Month) 1.3 1.3 1.3 1.3 1.3 0% 0
* The 5 & 4 Star Hotels can choose between 3 categories tariff or continue using the Flat rate tariff
** Applied for Consumption which Exceeds the Average Level of 1988 Consumption
Source: NEPCO
Awraq Investments www.awraq.com Tel: 962 6 550 3803 Fax: 962 6 550 3801 Toll Free: 080022248 P.O. Box 925102 Amman 11110 Jordan
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Figure 21: Wholesale Electricity Tariffs paid by JEPCO to NEPCO
Electric utility
companies
2003
9/7/2005-
30/6/2007
Starting
1/7/2007
Latest
increase %
Latest
increase (Fils)
A1: Maximum load JD/KW/month 2.40 2.40 2.40 0.0% 0.00
A2: Day supply Fils/Kwh 31.40 34.30 35.41 3.2% 1.11
A3: Night supply
Source: JEPCO
Fils/Kwh 21.40 24.25 25.36 4.6% 1.11
Jordanian Electric Power Company (JEPCO)
Awraq Investments www.awraq.com Tel: 962 6 550 3803 Fax: 962 6 550 3801 Toll Free: 080022248 P.O. Box 925102 Amman 11110 Jordan
[13]

Disclaimer
Jordanian Electric Power Company (JEPCO)
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Source: Awraq Investments
Awraq Investments www.awraq.com Tel: 962 6 550 3803 Fax: 962 6 550 3801 Toll Free: 080022248 P.O. Box 925102 Amman 11110 Jordan
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