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Majlis: Free Electricity Is a Political Gesture

Electricity is heavily subsidized in Iran. Power generation cost, including production and transmission, is 2 cents per kilowatt-hour, but is sold at 0.7 cents per kWh
Majlis: Free Electricity Is a Political Gesture
Majlis: Free Electricity Is a Political Gesture

The Rouhani administration’s decision to exempt households that use electricity within a certain limit from paying their bills is a politically-motivated gesture. It cannot help solve the power sector’s problems nor improve the quality of life of underprivileged, head of the Majlis Energy Commission said.
“It is no surprise that most households eligible for free electricity and who have already been identified by the Energy Ministry live in poor neighborhoods [apparently] supported by charity organizations,” Fereydoun Abbasi-Davani was quoted by Barq News website as saying.
Electricity bills of poor families usually do not exceed 30 cents a month and not charging them this amount will make no difference in their welfare, Abbasi-Davani said.
“Trumpeting a plan that 30 million subscribers will get free electricity will not address economic problems challenges as it is more a political gesture than a well-thought-out action plan.”

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