Setting Up an Energy Regulator (Framework Contract)

Jordan
Date: October 2006 - December 2007
Client: Delegation of the European Commission in Jordan

Project overview

The main objective of the project was to start the process through the establishment an Independent Energy Sector Regulatory Commission to meet the energy regulatory needs in an economically and environmentally sustainable manner. The establishment of this Commission included proposals as to approach, powers, funding, rules and procedures, legislation and long term operation.

The project promoted competition in the energy sector and protection of the interest of consumers willing and able to pay for the services they obtain, with respect to competitive and fair prices, reliability and quality of the sector services. It considered domestic and imported energy resources to satisfy the needs of Jordan and for increasing the future role of natural gas and renewable energy in the country’s energy balance. 

The project took into account licensing regimes, in particular for the downstream petroleum sector and retail gas sales and distribution sector. Gas distribution networks for smaller industry and for households were expected to be developed rapidly as the JGTP is brought into production and regulation for the protection of such consumers were a key issue.

The powers and mandate of regulators needed to be developed together with defined accountability and provision for review. Statutory duties for conduct and consumer protection have also been provided for.

Our missions

The tasks implemented by BCEOM (previous name of Egis) were:

  • to specify the exact responsibilities of the Ministry of Energy and Mineral Resources and the Energy Sector Regulatory Commission and other related energy institutions and clearly defined the boundaries between these responsibilities
  • advice in respect of formation of the Energy Sector Regulatory Commission
  • recommendations in respect to the required amendments in any legislation found necessary to establish the Energy Sector Regulatory  Commission to avoid any contradiction between legislations, in particular the General Electricity Law and any new legislation
  • advice on the legal status, role, mandates and powers to the Electricity Regulatory Commission and any revisions to its existing role to integrate it with the Energy  Sector Regulatory Commission
  • action plan describing the critical steps that need to be followed to implement the recommended strategy. A timetable of steps to be taken was  established as well as an indication of the resources to be mobilized to ensure the plans will be implemented successfully
  • draft of the law to establish an Independent Energy Sector Regulatory Commission, including all activities (electricity, gas and oil). This law shall be in line with best international practices.