Jordan Electric Power : Disclosure (JOEP) 2024 04 02

JORDAN ELECTRIC POWER

ﺔﻴﻟﺎﻤﻟﺍ ﻕﺍﺭﻭﻻﺍ ﺔﺌﻴﻫ ﺓﺩﺎﺴﻟﺍ ﻥﺎﻤﻋ ﺔﺻﺭﻮﺑ ﺓﺩﺎﺴﻟﺍ ﺔﻴﻧﺩﺭﻻﺍ ﺀﺎﺑﺮﻬﻜﻟﺍ :ﺔﻛﺮﺸﻟﺍ ﻢﺳﺍ AM 11:26:29 2024-04-02 :ﺦﻳﺭﺎﺘﻟﺍ ﺕﺎﺑﺎﺴﺤﻟﺍ ﻖﻗﺪﻣ ﺮﻳﺮﻘﺗ ﻝﻮﺣ ﺔﻛﺮﺸﻟﺍ ﻱﺍﺭ :ﻉﻮﺿﻮﻤﻟﺍ	To: Jordan Securities Commission, Amman Stock Exchange Company's Name: JORDAN ELECTRIC POWER Date: 02-04-2024 11:26:29 AM Subject: Company's opinion on the aforementioned auditor's report
ﺓﺩﺎﺴﻟﺍ ﺔﻛﺮﺸﻟﺍ ﺕﺎﺑﺎﺴﺣ ﻖﻗﺪﻣ ﺮﻳﺮﻘﺗ ﻝﻮﺣ ﺎﻨﻳﺍﺮﺑ ﻢﻜﻣﻼﻋﺍ ﺩﻮﻧ -:ﻲﻠﻳ ﺎﻤﻛ KPMG	Kindly be informed that our opinion regarding our Auditor's report Messrs.' KPMG as follows:-
ﻆﻔﺤﺗ :ﺮﻳﺮﻘﺘﻟﺍ ﻉﻮﻧ	Type of Report: Qualified
:ﺔﻛﺮﺸﻟﺍ ﻱﺃﺭ	Company's opinion:
ﺕﺎﻴﺿﺮﻔﻟﺍﻭ ﺲﺳﻻﺍ ﺔﻋﻮﻤﺠﻣ) ﺔﻓﺮﻌﺘﻟﺍ ﺔﻴﺠﻬﻨﻣ ﺖﺼﻧ ﺔﻓﺮﻌﺘﻟﺍ ﺏﺎﺴﺣ ﻲﻓ ﻡﺪﺨﺘﺴﺗﻭ ﺔﺌﻴﻬﻟﺍ ﻦﻋ ﺭﺪﺼﺗ ﻲﺘﻟﺍ ﺐﻴﻟﺎﺳﻻﺍﻭ ﻦﻣ (4) ﺓﺩﺎﻤﻟﺍﻭ (ﺎﻬﺘﻌﺟﺍﺮﻣﻭ ﻢﻬﻟ ﺺﺧﺮﻤﻟﺍ ﻰﻠﻋ ﺔﻘﺒﻄﻤﻟﺍ :ﻲﺗﻵﺍ ﻰﻠﻋ ﺔﻛﺮﺸﻠﻟ ﺔﺣﻮﻨﻤﻤﻟﺍ ﺔﺼﺧﺮﻟﺍ ﻚﻟﺫ ﻲﻓ ﺎﻤﺑ ،ﺓﺬﻓﺎﻨﻟﺍ ﺔﻴﻧﺩﺭﻻﺍ ﻦﻴﻧﺍﻮﻘﻟﺎﺑ ﻪﻟ ﺺﺧﺮﻤﻟﺍ ﻡﺰﺘﻠﻳ 1-" ﺪﻴﺷﺮﺗﻭ ﺓﺩﺪﺠﺘﻤﻟﺍ ﺔﻗﺎﻄﻟﺍ ﻥﻮﻧﺎﻗﻭ ،ﻡﺎﻌﻟﺍ ﺀﺎﺑﺮﻬﻜﻟﺍ ﻥﻮﻧﺎﻗ .ﺺﻴﺧﺮﺘﻟﺍ ﻡﺎﻈﻧﻭ ﺔﺌﻴﺒﻟﺍ ﻥﻮﻧﺎﻗﻭ ،ﺔﻗﺎﻄﻟﺍ ﺎﻫﺭﺪﺼﺗ ﻲﺘﻟﺍ ﺔﻴﻤﻴﻈﻨﺘﻟﺍ ﺕﺎﻤﻴﻠﻌﺘﻟﺍ ﺔﻓﺎﻜﺑ ﻪﻟ ﺺﺧﺮﻤﻟﺍ ﻡﺰﺘﻠﻳ 2-ﻖﺒﻄﻨﺗ ﻱﺬﻟﺍ ﺭﺪﻘﻟﺎﺑ ﻚﻟﺫﻭ ،ﺮﺧﻵ ﺖﻗﻭ ﻦﻣ ﺔﺌﻴﻬﻟﺍ ﺎﻬﻴﻠﻋ ﻖﻓﺍﻮﺗ ﻭﺍ .ﺕﺎﻤﻴﻠﻌﺘﻟﺍ ﻩﺬﻫ ﻲﻓ ﺓﺩﺭﺍﻮﻟﺍ ﻡﺎﻜﺣﻻﺍ ﻪﻴﻠﻋ ...... 3- ﺓﺪﻳﺪﺟ ﺔﻤﻈﻧﺍ ﻭﺍ ﺕﺎﻤﻴﻠﻌﺗ ﻱﺄﺑ ﺪﻴﻘﺘﻟﺎﺑ ﻪﻟ ﺺﺧﺮﻤﻟﺍ ﻡﺰﺘﻠﻳ 4-".ﺔﺌﻴﻬﻟﺍ ﺎﻫﺭﺪﺼﺗ ﺕﺎﻬﻴﺟﻮﺘﻟﺍ ﻊﻣ ﺎﻴﺷﺎﻤﺗﻭ- ﺔﻛﺮﺸﻟﺍ ﻥﺈﻓ ﻡﺪﻘﺗ ﺎﻣ ﻰﻠﻋ ﺀﺎﻨﺑ ﺔﻗﺎﻄﻟﺍ ﻉﺎﻄﻗ ﻢﻴﻈﻨﺗ ﺔﺌﻴﻫ ﺓﺩﺎﺴﻟﺍ ﻦﻋ ﺓﺭﺩﺎﺼﻟﺍ ﺕﺍﺭﺍﺮﻘﻟﺍﻭ ﻢﻗﺭ ﺔﻴﻟﺎﻤﻟﺍ ﺮﻳﺭﺎﻘﺘﻠﻟ ﻲﻟﻭﺪﻟﺍ ﺭﺎﻴﻌﻤﻟﺍ ﻖﻴﺒﻄﺘﺑ ﻢﻘﺗ ﻢﻟ -ﻥﺩﺎﻌﻤﻟﺍﻭ ﺔﻌﻗﻮﺘﻤﻟﺍ ﺔﻴﻧﺎﻤﺘﺋﻻﺍ ﺮﺋﺎﺴﺨﻟﺎﺑ ﻖﻠﻌﺘﻤﻟﺍ "ﺔﻴﻟﺎﻤﻟﺍ ﺕﺍﻭﺩﻻﺍ" (9) ﺔﻗﺎﻄﻟﺍ ﻉﺎﻄﻗ ﻢﻴﻈﻨﺗ ﺔﺌﻴﻫ ﺓﺩﺎﺴﻟﺍ ﺏﺎﺘﻛ ﻰﻟﺍ ﺍﺩﺎﻨﺘﺳﺍ ﻚﻟﺫﻭ ﻦﻤﻀﺘﻤﻟﺍﻭ 2021/10/20 ﺦﻳﺭﺎﺗ 10550/2/3 ﻢﻗﺭ ﻥﺩﺎﻌﻤﻟﺍﻭ ﺭﺎﻴﻌﻤﻟﺍ ﺍﺬﻫ ﻖﻴﺒﻄﺗ ﻦﻣ ﺀﺎﺑﺮﻬﻜﻟﺍ ﻊﻳﺯﻮﺗ ﺕﺎﻛﺮﺷ ﺀﺎﻔﻋﺍ ﺪﻳﺪﻤﺗ ﺺﺼﺨﻣ ﻥﺃ ﺚﻴﺣ .(2023-2022) ﺔﻓﺮﻌﺘﻟﺍ ﺓﺮﺘﻔﻟ ﻲﺒﺳﺎﺤﻤﻟﺍ ﺐﺠﻳ ﻲﺘﻟﺍ ﻒﻳﺭﺎﺼﻤﻟﺍ ﻦﻣ ﺍﺀﺰﺟ ﺮﺒﺘﻌﻳ ﺔﻴﻧﺎﻤﺘﺋﻻﺍ ﺮﺋﺎﺴﺨﻟﺍ ﺏﻮﻠﻄﻤﻟﺍ ﺪﺋﺎﻌﻟﺍ ﻖﻴﻘﺤﺘﻟ ﺔﻴﺋﺎﺑﺮﻬﻜﻟﺍ ﺔﻓﺮﻌﺘﻟﺍ ﻲﻓ ﺎﻬﺘﻴﻄﻐﺗ ﻉﺎﻄﻗ ﻢﻴﻈﻨﺗ ﺔﺌﻴﻫ ﺓﺩﺎﺴﻟﺍ ﻡﺰﻠﺗ ﻲﺘﻟﺍﻭ ﺔﺼﺧﺮﻟﺍ ﺐﺟﻮﻤﺑ ﺔﻛﺮﺸﻠﻟ ﻦﻴﻛﺮﺘﺸﻤﻟﺍ ﺕﺎﺌﻓ ﺔﻓﺮﻌﺗ ﻊﻓﺮﺑ ﺔﻟﺎﺤﻟﺍ ﻩﺬﻫ ﻲﻓ ﻥﺩﺎﻌﻤﻟﺍﻭ ﺔﻗﺎﻄﻟﺍ ﺔﻛﺮﺷ ﻦﻣ ﺔﻠﻤﺠﻟﺎﺑ ﺀﺍﺮﺸﻟﺍ ﺔﻓﺮﻌﺗ ﺾﻴﻔﺨﺗ ﻭﺃ ﺔﻔﻠﺘﺨﻤﻟﺍ ﺔﺋﺰﺠﺘﻟﺎﺑ ،ﺮﻴﻧﺎﻧﺪﻟﺍ ﻦﻴﻳﻼﻤﺑ ﺮﺋﺎﺴﺧ ﻦﻣ ﻲﻧﺎﻌﺗ ﻲﺘﻟﺍﻭ ﺔﻴﻨﻃﻮﻟﺍ ﺀﺎﺑﺮﻬﻜﻟﺍ .ﺺﺼﺨﻤﻟﺍ ﺍﺬﻫ ﻞﻣﺎﻛ ﺪﻴﻗ ﻡﺪﻋ ﺔﻛﺮﺸﻟﺍ ﺕﺭﺮﻗ ، ﻚﻟﺬﻟ ًﺎﻳﺩﺎﻔﺗﻭ	The tariff methodology (a set of principles, assumptions and methods issued by the Regulator and used in calculating and reviewing the tariff applied to licensees) and Article (4) of the license granted to the company stipulated the following: 1- The licensee shall abide by the Jordanian laws in force, including the General Electricity Law, the Renewable Energy and Energy Conservation Law, the Environment Law and the licensing system. 2- The licensee shall comply with all regulatory instructions issued or approved by the Regulator from time to time, to the extent that the provisions contained in these instructions apply to him. 3- ...... 4- The licensee shall abide by any new instructions or regulations issued by the Regulator. Based on the foregoing, the company - and in line with the directives and decisions issued by the Energy and Minerals Regulatory Committee, did not apply International Financial Reporting Standard No. (9) "Financial Instruments" related to expected credit losses, based on the book of the Energy and Minerals Regulatory Committee No. 3/2/10550 dated 20/10/2021, which includes extending the exemption of electricity distribution companies from applying this accounting standard for the tariff period (2022-2023). as the expected credit losses is considered part of the expenses that must be covered in the electric tariff to achieve the required return for the company under the license, which obliges the Energy and Minerals Regulatory Committee to raise the tariff for the different categories of retail

JORDAN ELECTRIC POWER

subscribers or reduce the tariff for bulk supply purchases from the National Electric Power Company, which suffers losses of millions of JDs. To avoid this, the company decided not to record all of this expected credit loss.
Date of auditor's report: 30-03-2024	2024-03-30 :ﻖﻗﺪﻤﻟﺍ ﺮﻳﺮﻘﺗ ﺦﻳﺭﺎﺗ
Please accept our sincere thanks and appreciation. Chairman of Board of Directors User Name: ﺭﺩﺎﻘﻟﺍ ﺪﺒﻋ ﻕﺭﺎﻃ	.ﻡﺍﺮﺘﺣﻻﺍ ﻖﺋﺎﻓ ﻝﻮﺒﻘﺑ ﺍﻮﻠﻀﻔﺗﻭ ﺓﺭﺍﺩﻹﺍ ﺲﻠﺠﻣ ﺲﻴﺋﺭ ﺭﺩﺎﻘﻟﺍ ﺪﺒﻋ ﻕﺭﺎﻃ :ﻡﺪﺨﺘﺴﻤﻟﺍ ﻢﺳﺍ