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Time-of-use tariffs in Jordan: turning the electricity bill into a strategy

Jordan’s time-of-use tariffs charge industry far more at the evening peak. Plants that combine load shifting with efficiency can cut costs twice — once on the price, once on the volume.

OCCASIO® Team
Time-of-use tariffs in Jordan: turning the electricity bill into a strategy

Jordan has been restructuring electricity prices for productive sectors in line with the Economic Modernisation Vision, one of whose stated objectives is lower electricity prices for economic activity. A central tool is the time-of-use tariff: lower rates off-peak, higher rates at the evening peak.

How big is the difference?

Reported peak-period rates (17:00–23:00) give a sense of the stakes: around 226 fils/kWh for extractive industry, 130 fils/kWh for large industry and 79 fils/kWh for medium industry. The Energy Minister has argued that the tariff structure is designed to reward plants that shift load, projecting very large savings for industry if a quarter of loads moved to low-demand periods.

Two levers, not one

Most companies hear “time-of-use” and think only about scheduling. That is the first lever: price per kWh. The second is how many kWh you need at all. They compound:

  • Shift: move batch processes, water pumping, charging and pre-cooling out of the peak window where the process allows.
  • Cut: reduce losses on the loads that cannot move — motors, compressors, chillers — through power-quality treatment and maintenance.
  • Contract: review the tariff category and maximum demand against your real load profile.

Start with data

A credible programme starts with 12 months of bills, production records and, ideally, interval meter data. From there, OCCASIO® builds a baseline, models the tariff impact of different schedules and identifies efficiency measures with measurable payback — such as passive power-quality treatment from our sister company Denka®, which has delivered verified savings at Jordanian sites including Dar Al Dawaa and HOMAIN.

The bill is not a fixed cost. Ask OCCASIO® for a tariff and efficiency review.

Sources

Topics#Jordan#electricity tariffs#cost reduction#industry#energy management

Written by

OCCASIO® Team

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