Distributive policy

ICCIMA urges government to reconsider controlled electricity pricing policy

The Research Center of Iran’s Chamber of Commerce, Industries, Mining and Agriculture has criticized a controversial policy under which private power generators are forced to sell power to the state-owned company. Iran Power Generation, Transmission and Distribution Management Company (Tavanir) at prices determined by the government.
Reflecting the opinion of specialized commissions and provincial chambers across the country, ICCIMA said in a report that as long as the private sector is forced to sell electricity at specified (low) prices, investors will not be not interested in power infrastructure development, Barq News reported.
Echoing the views of a cross-section of experts, the chamber said investments in the electricity sector amounted to $7 billion in 2008, which fell by 85% to 1 billion dollars in 2020.
“Electricity generation in Iran costs at least 3 cents per kilowatt hour for the private sector, but it should sell it to Tavanir for less than 2 cents and consumers are charged less than 1 cent per kWh,” reads a statement. extract from the report.

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