Monday, October 25, 2010

Electricity Price Increase

The Iranian government’s working group on subsidy reforms has decided to increase the price of electricity from 160 rials/kWh to 400 rials/kWh, a 250% increase in price [ISNA, 25 October].

ISNA also reports that 110 rials/kWh of the new price, or 28% of revenues generated by the sale of the electricity, will be funneled to the Targeted Subsidy Fund. The Fund was created to offset the effect of subsidy reforms and the rapid rise in consumer prices on poor families.

6 comments:

Anonymous said...

like everywhere else in the world.

In Europe price is an avrage 0.22€ cent

calculate with me

eg.a stadandard TFT Monitor consumes 35W

meaning...

35W x 8(hours per day)x 0.22 (Cent)

divided into 1000 (1KWH)

we get per day a cost of 0,0616 (€ cetnt per day)

0.0616 x 365 (days in a year) we get 22,48 € Energy consumption per year

Sir Dariush London

Anonymous said...

Now lets calculate the same consumtion in Iranian pricing (after the raise)

35 x 8x 40(tuman) : 1000 x 365 = 4088 tuman per year

4088,-tuman by course of 1€=1600T means 2.55€ consumption or cost per year for an Iranian.

Sir Dariush London

Nader Uskowi said...

Thanks for the calculations and comparison to electricity costs in Europe.

I believe the subsidy reform is the single most important economic initiative undertaken by an Iranian government in the past two decades. The country can not afford subsidizing energy and other key products at such low rates and pretends that all is going well. It was high time for such reforms.

Previous governments were weary of the public backlash and never had the stomach to undertake these reforms. It is no secret to the readers of this blog that I personally oppose many of the policies of the current government. But Ahmadinejad's steadfast support and now the implementation of these reforms were courageous and admirable. The Iranian economy will be a much stronger economy as the result of these reforms.

My fears are in the implementations of these reforms. There will come time that politicians might give under public pressure, and this is true in any country. The key to success here is to keep the faith in these reforms. Things will start turning for better much sooner than later.

Anonymous said...

Where might I ask did you buy your title Sir Dariush of London. Was it the last gift of the most useless chancellor and prime minister of the UK. You as me a non Iranian see the rise of Iran under El Magnifico getting to great heights and a reopening of "The Great Silk Road"

Anonymous said...

as every one know iran electricity bill is the lowest in the world to level up require action taken by every one as the people of iran knowe it must be change for better life to gain the absolute success for future life also every extra money they pay will be back to them hand by providing every month to them citizan mean the poverty line will be demanished in the future and the power of baying will be increase and market ecconomy will be florished that people of iran want it the most.

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