NEPCO Faces Higher Generation Costs Due to Rising Global Fuel Prices

The National Electric Power Company (NEPCO) in Jordan is facing higher electricity generation costs due to rising global fuel prices. The company directly bears the increase in generation costs, which it says affects its financial statements as operating losses and rising debt.

Natural gas accounts for the largest share of the energy mix used for power generation, with 63% of electricity generated from it in 2025 compared to 56% during the first eight months of 2026. The company uses liquefied natural gas (LNG), diesel, and heavy fuel oil, as well as other sources like renewable energy, which increased its share from 18% in 2025 to 21% in 2026.

NEPCO bears the additional generation costs because it is responsible for securing fuel supplies for power generation companies. The company has contingency plans to deal with potential supply disruptions and maintain electricity system stability. NEPCO also mentioned that it can import LNG through its floating storage and regasification unit (FSRU) in Aqaba, depending on available quantities.