The head of the Iranian regime’s Chamber of Commerce has reported that Iran’s production has reached its lowest level in the last 36 months. Meanwhile, Mohammad Sahamian-Moghaddam, a member of the board of the Industrial Managers Association of Razavi Khorasan Province, has announced that at least 40% of production capacity has been lost. Tavanir (the Iran Power Generation, Transmission, and Distribution Company) has ordered industries to reduce consumption by 90%.
Samad Hassanzadeh, the head of Iran’s Chamber of Commerce, also emphasized that in July this year, there has been a significant reduction in production in 12 industrial sectors across the country.
Sahamian-Moghaddam told the state-run Ham-Mihan newspaper that on Saturday, August 17, “around 1,000 factories were contacted,” and “there is a recording stating that electricity consumption must be reduced by more than 90% for two weeks; otherwise, due to grid issues, power will be cut off without notice.”
Sahamian-Moghaddam emphasized that this order was issued by Mostafa Rajabi Mashhadi, the CEO of Tavanir, from Tehran. According to him, “By law, they do not have the right to cut off electricity to industries.”
This private sector activist also spoke about the consequences of power outages on Iran’s economy, stating that many export-oriented companies have fallen significantly behind in their export schedules, and many of their export contracts are on the verge of cancellation.
Sahamian-Moghaddam also mentioned the impact of these blackouts on the domestic market, saying, “Some companies are losing their customers, suffering losses, and facing penalties.”
Another impact of the blackouts is on employment. Sahamian-Moghaddam told Ham-Mihan newspaper that some companies have lost employees and are in the process of layoffs, while others have faced equipment failures due to sudden power cuts.
Finally, this private sector activist stressed that in a year when production was supposed to leap forward, “we have already lost at least 40% of our production capacity.“
Experts believe that mismanagement and lack of planning are the main factors behind the imbalance in Iran’s energy sector. The Bushehr nuclear power plant, which took more than two decades to complete, provides only 1.3% of the country’s electricity.
Hashem Oraei, an electrical engineering professor at Sharif University, criticized the mismanagement and “weak planning” in August last year, noting that the combined nuclear, renewable, self-supply, and diesel power plants in Iran “provide only 5% of the country’s electricity.”
In addition to damaging industries and household appliances, power outages are also driving up the prices of some products.
Reza Mohtashamipour, the regime’s Deputy Minister of Industry, Mining, and Trade, announced in a letter to the Minister of Industry, Mines, and Trade in late June this year that the electricity restrictions on industries this summer will intensify, leading to significant disruptions in industries such as steel and cement, ultimately resulting in reduced production and increased prices.
