In last week’s newspaper in Amman Jordan, it was reported that the Government was going to issue a new licensing regulation for power companies, which removed the exemption from licensing fees for companies generating power from renewable energy sources. This new regulation is not yet effective as the draft was issued by the Electricity Regulatory Commission (the regulator) and is yet to be approved by the Cabinet and published in the official gazette (but is expected to be published within the month).

Under the new draft regulation, licence fees for renewable energy power generators are expected to be as follows:

  • one time licence issuance fee of one percent (1%) of the company’s registered share capital (such 1% to also be paid on any further increase of the company’s registered capital); plus
  • an annual license fee of (0.01) Fils (which is 0.00001 JOD) per KWh sold from the project.

The one-time licence issuance fee is to be paid upon issuance of the licence. The annual licence fees are to be paid in equal quarterly payments, and an adjustment will be made at the end of the year to reconcile the fees paid and the actual fees due based on electricity sales.