The number of electricity meters nationwide has soared by 1 million over the past 12 months to exceed 39 million, the energy minister said.
“The total number of consumers in four sectors [households, industries, agriculture and commerce] was 38 million in 2021, which has now experienced a 3% rise to reach 39,300 million,” IRNA also quoted Ali Akbar Mehrabian as saying.
The new subscribers will increase the national grid load by 2,000 kilowatts, he added.
According to the minister, the number of electricity meters nationwide in household, agricultural and industrial sectors has grown 12-fold in four decades.
“There were three million electricity consumers in 1980, which figure is currently 38 million,” he added.
Statistics by the Power Generation, Distribution and Transmission Company show that household subscribers witnessed the biggest increase (475,000 new meters) and reached 30.4 million, up 7% compared to 2021 when the figure stood at 30.2 million.
There were about 480,000 electricity meters in the agro sector last year, which has now risen by 3%, meaning 14,000 new subscribers have been added to the key sector.
The number of consumers in the commercial sector has experienced a rise of 4%. In other words, 202,000 new users have been added, increasing the number of subscribers in the commercial sector to 5.1 million.
Industrial consumers have increased from 1.7 million to 1.9 million.
To curtail electricity consumption and ease power demand, subscribers will be charged as per the new scheme that took effect on Jan. 20.
“As per the new plan, those who consume up to 300 kWh per month are charged as much as before. Nonetheless, if consumption stands between 300 kWh and 450 kWh, subscribers are charged 6,000 rials [3 cents] per kWh. Subscribers whose consumption level stands between 450 kWh and 600 kWh are levied at a rate of 5 cents per kWh. If consumption exceeds 600 kWh, consumers need to pay 7 cents per kWh,” the minister said.
Having different consumption categories and a progressive increase in tariffs are expected to moderate consumption and cut down consumers’ power bills.
All industrial units that consume more than 2 megawatts of electricity per month will be charged 2.5 cents per kilowatt hour as of the next fiscal year (starting March 2022).
“Industries are levied 0.5 cent per kilowatt-hour currently and the 400% rise is expected to help the cash-strapped Energy Ministry meet its financial requirements,” he said.
As per the new bill passed by the Majlis, electricity tariffs for energy-intensive industries, namely cement factories, oil refineries and petrochemical and steel companies, will increase fivefold as of March 2022.
Industries account for 40% of Iran’s annual power consumption of 280 billion kilowatts-hour.
Economic Growth
According to Mehrabian, there is a direct link between economic growth and power consumption, such that the economy cannot boom as long as electricity is not used efficiently.
“Power supply restrictions on industries, including steel and cement factories, will regrettably result in unemployment and reduce exports,” he said.
“Iran has access to huge hydrocarbon resources and the best strategy to take advantage of them is to convert fossil fuel energy to electricity to not only meet domestic needs but also to generate revenue via export.”
The minister noted that as an important production factor, electricity should help manufacture value-added goods, which would create jobs in other sectors.
Referring to the power deficit in summer, he said the shortage is projected to be around 10 GW.
Electricity demand will peak at 70 gigawatts in June, while all power stations in Iran cannot generate more than 60 GW.
“Power sector has experienced a substantial growth over the last four decades. Our installed capacity was 10 GW in 1980 and it has now reached 60 GW. However, consumption patterns should be modified, or power outages will keep taking heavy tolls on industries,” Mehrabian said.
“The installed power capacity of 60 GW is not enough to meet current demand and lack of investment is causing distress, as the key sector is already facing shortages.”
Power consumption in Iran grows by 5-6% per year, but expansion plans have been undermined by financial constraints, management issues and the dominance of energy subsidies.
