The results of a study show that the real price of electricity for industries in Iran is up to seven times higher than the official rates. Between 2018 and 2025, the official price of industrial electricity rose about 12 times, while in practice the real increase has been around 30 times.
According to a study by the Institute for Trade Studies and Research, published on Sunday, August 24, in the current conditions of the country, industrial electricity bills include not only the base rate but also additional costs such as obligations under Article 16, non-green electricity purchases, fuel price differences, and transit costs.
Unprecedented Energy Crisis and Government’s Inability Force Shutdowns in 27 Provinces in Iran
These additional charges ultimately increase the electricity cost up to seven times the base rate.
A review of changes in industrial electricity rates between 2018 and 2025 shows that over six years, while the base price rose 12 times, the actual increase has been about 30 times.
Meanwhile, contrary to the Iranian regime officials’ frequent claims that electricity prices in Iran are lower than in other countries, the study shows that the average price of one kilowatt-hour for energy-intensive industries in the Persian Gulf countries is 4.3 cents, while for Iran it is set at 11.86 cents. In other words, the electricity price for energy-intensive industries in Iran is nearly three times higher than the regional average.
Between 2018 and 2025, industrial electricity prices increased by 3.7% in India, 19% in Turkey, and remained unchanged in the United Arab Emirates. But in Iran, the official increase in industrial electricity prices reached 1,223%.
The domino effect of industrial electricity, from factories to markets and workers’ livelihoods
The shock from this severe price hike, along with frequent power outages, has affected the final prices of industrial products. For instance, in June 2025, cement prices in the Iranian market rose by up to 228% compared to the previous year due to production halts in manufacturing units.
Industrial sector representatives have warned that due to widespread power outages starting in May, steel production in 2025 is expected to decline by 33%.
The electricity crisis in industries has created a domino effect on other sectors as well. On August 1, Mahmoud Najafi-Arab, head of the Tehran Chamber of Commerce, said: “Electricity in industrial units is cut off three days a week, and despite having assets, including human resources, we cannot achieve the necessary productivity from the industry.”
In these conditions, labor activists across different provinces have warned about the collapse of workers’ livelihoods following the closure or partial shutdown of industrial units.
According to them, reduced shifts, the elimination of production bonuses, and the possibility of layoffs have put the lives of thousands of workers at risk.
Akbar Showkat, executive secretary of the Workers’ House in Qom province, stated that some industrial towns in this province are without electricity for up to two days a week, and reduced shifts have led to lower wages for workers.
