Power wastage in Tehran was 6.9% in 2018, but has now decreased to 6.5%.
According to the Energy Ministry news portal, doing away with malfunctioning equipment, supply lines, utility poles, self-contained cables and use of smart electric meters are among measures taken to help reduce electricity loss.
On average $22 million is spent annually to optimize, upgrade and expand the national power grid to meet routinely growing demand, the news agency added.
Money goes largely for improving and replacing old and dilapidated distribution equipment and parts and developing infrastructure.
Almost 1,200 kilometers of the power distribution network (from the total 35,000 km) in Tehran are old. About 10% of the ageing grid is renovated annually. Furthermore, 1,200 substations (out of 18,000) in the ever-expanding city need to be upgraded.
Tehran has close to 4.7 million subscribers, 75% of which are households. On average 100,000 new customers join the bulging subscription list each year across the province that has grown in all four directions piling pressure on utilities, namely water, electricity and gas.
“The good thing is that 80% of homes keep in line with the average consumption of 300 kilowatt hour per month,” Hossein Sabouri, managing director of Tehran Province Electricity Distribution Company said.
According to the Energy Ministry, imposing higher tariffs on those who exceed the consumption limits is being highly recommended to convince the public to consume prudently and prevent rolling power outages – moves taken in the past years in some region during the hot summer months.
Reasonable prices will lead to judicious consumption, save energy and prevent excruciating blackouts, he added.
According to energy and economic experts say subsidized electricity (like water and gas) rarely gets the attention it deserves. In most countries, developed and developing when, people are very careful when it comes to power consumption mainly because it is very rarely subsidized.
Observers recall that long gone are the days when advising and pleading would spur consumers to moderate their consumption habits and cut their power bills.
The Energy Ministry has said Iran's average electricity consumption growth rate is around 7% per year, almost 3.5 times over and above the global average, which is alarming. One reason for the heavy consumption, it says, is low tariffs.
They often say the experience of developed countries shows that the only way to compel subscribers to stay away from overconsumption and waste is higher prices.
Power generation cost, including production and transmission, is 2 cents per kilowatt-hour. Electricity is presently sold at 0.7 cents per kWh.
People understand the problems better when hit in the pocket, they insist.
Iran’s overall installed power capacity is 83,630 megawatts.
