This study analyzes changes in industrial aggregate electricity intensity, during the period 1998-2005, and identifies major factors affecting the aggregate electricity intensity change using the refined Laspeyers method decomposition technique. The Jordanian industrial sector was disaggregated into seven groups: mining of chemical and fertilizers, paper, plastics, petrochemical, cement, steel and others industries. Aggregate electricity intensity has decreased from approximately 1.30 to 0.93 kWh US$(-1) in 1998 and 2005, respectively. The analysis showed that the structural and efficiency effects contribute to decreases of around 21 and 79%, respectively, of total aggregate electricity intensity decline in the industrial sector. Such result is considered of high importance for energy and/or electricity analysts and planners, in Jordan and other countries, especially for the purpose of forecasting future demand more logically and without unnecessary exaggerations. Copyright (C) 2008 John Wiley & Sons, Ltd.