The Jordanian Electricity Regulatory Commission : Independence in Theory or in Practice?

Around the world, a number of countries have created or are in the process of creating National Regulatory Authorities to regulate their electricity sectors. Amongst these countries is the Hashemite Kingdom of Jordan (Jordan) which has established the Electricity Regulatory Commission (ERC) in 2002. In literature, it was stressed that the independence of national authorities is amongst the most important characteristics for achieving effective governance and regulation. Accordingly, with national objectives including the development of the electricity sector in the interest of the public, protection of undertakings, encouragement of investments and strengthening the role of the ERC in the advancement of the sector; it is the objective of this paper to assemble the fundamental principles for the autonomy of the ERC and evaluate whether the current framework is adequate to meet such objectives. The paper will first provide an overview on the history and development of the Jordanian Electricity Sector. Then, it will analyse the ERC's independence from the government and stakeholders. Finally, it will conclude by evaluating its autonomy with regard to its decision-making competencies and market sustainability and control