To curtail electricity consumption and ease power demand that soared to record-high levels in recent days, Iran Power Generation, Distribution and Transmission Company (Tavanir) said it is charging consumers based on their consumption level, with the top energy users charged up to eight times the tariffs levied on average users, the company spokesman said.
“Under a stepwise pricing scheme, subscribers who consume less than 300 kilowatt-hour per month pay much less than the bill paid by those using more than 600 kWh monthly,” Mostafa Rajabi Mashhadi was also quoted as saying by ILNA.
“Power is sold at 1,000 rials (5 cents) per kWh to those whose consumption is maximum 300 kilowatts per month and those who use between 300 KW and 600 KW are levied 16% more than the previous category [6 cents per kWh]. And consumers that use more than 600 KW per month are charged 8,000 rials [40 cents] per kWh,” he added.
Having different consumption categories and a progressive increase in tariffs spurs consumers to moderate their usage and cut down on their power bills.
Setting a Record
Electricity consumption in Iran set a record on Aug. 10 by exceeding 67,000 megawatts and breaking the all-time record yet another time this year, Rajabi said.
While the record set last summer was 58 gigawatts, new highs have been registered this year, reaching unprecedented levels in the history of the country.
With the early rise in temperatures across the country this year, power consumption began to increase gradually and last year’s midsummer record was broken this year before the start of summer.
On June 20, electricity use surpassed 62 GW. At the end of June, it exceeded 64 GW and in less than 10 days, it set another record, reaching 66 GW in early July.
Exceeding Limits
Imposing higher tariffs on those who exceed reasonable consumption limits is the most effective way of convincing the public to consume electricity prudently, a veteran economist says.
"The experience of developed countries shows that the only solution to impel subscribers to use power judiciously is by revising prices and imposing a surcharge on heavy consumers, which would cover the actual price that includes the costs for generation, dispatch and transmission," Ali Shams Ardekani, who is also the head of Energy Commission of Iran Chamber of Commerce, Industries and Mines, told IRNA.
According to the official, long gone are the days when an advisory would spur consumers to moderate their usage and reduce their power bills.
Ardakani, a former diplomat and government advisor who holds a PhD in economics, believes that large consumers must be levied much higher prices compared to the average users.
"There must be a tangible difference between electricity tariffs in peak and non-peak hours so that subscribers feel the necessity to scale down consumption," he said.
"By adopting such an approach, more consumers will opt to purchase efficient appliances to curb power use, while officials won't have to plead with people to turn off unnecessary lamps."
