A review of the new tariffs shows that electricity costs for Iranian households have increased by approximately 38 percent up to the consumption threshold and by up to 83 percent beyond it.
The state-run Mehr News Agency reported on Saturday, November 23, that a comparison of the new tariffs with the previous ones (prior to September) for non-peak months indicates that the rate hikes, with two exceptions, are around 38 percent. However, for mid-range consumption between 200 to 300 kilowatt-hours (for rates under 200 kilowatt-hours), there is an 83 percent increase, and for mid-range consumption between 300 to 450 kilowatt-hours, there is a 78 percent increase.
The state-run Tasnim News Agency also published the new electricity tariffs, showing that, for example, after September, the price of each kilowatt-hour of electricity up to the consumption threshold increases incrementally depending on the region.
Abdolamir Yaghoubi, Director General of Energy and Customer Affairs at Tavanir (Iran’s national electricity company), stated that 75 percent of electricity consumers use below the threshold, with their bills amounting to approximately 180,000 rials (around $0.26). However, for those consuming above the threshold and up to 800 kilowatt-hours, the cost increases incrementally and can reach around 18 million rials (around $26).
The government, citing the continuous depreciation of the rial, argues that energy prices need to rise. This, however, is controversial due to the increasing poverty among the population and the inflationary effects it could cause.
In fact, under the new tariffs, electricity prices for extremely high-consuming Iranian households have reached one-quarter of the prices in the European Union.
For instance, statistics from the European Union indicate that the annual electricity cost for a household is €400 (more than the average monthly salary of an employee in Iran), but this amount is only slightly over one percent of the average annual salary of an employee in European countries.
It is also important to note that the average household electricity consumption in the European Union is 33 percent higher than that of Iranian households.
Mostafa Rajabi Mashhadi, CEO of Tavanir, also clarified on Saturday that, given the rising costs of electricity production, consumers who use up to 1.5 times the threshold will be charged 1.5 times the electricity supply cost, while those consuming more than 2.5 times the threshold will be charged five times the electricity supply cost.
This price increase comes as the Iranian government, about two weeks ago, began cutting off residential and commercial electricity across the country due to a shortage of natural gas and liquid fuel for power plants.
