Export of electricity by the government is a mistake, head of the energy commission of the Iran Chamber of Commerce, Industries and Mines said in a statement Sunday.
"Whether by the energy ministry or the oil ministry, it is not only wrong, but also illegal, and economically imprudent for the government to undertake such exports," Ali Shams Ardakani was quoted by ISNA as saying.
The official acknowledged that the government is exporting power to make up for past losses, but insisted that it would be against the principles outlined by the Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei, and contradicts Article 44 of the Islamic Republic Constitution. The key article helps open new opportunities for the struggling private sector and boost privatization.
Following the highly controversial policies of the former administration, such as using electricity revenues to fund the costly subsidy reform plan, the Ardakani said the present government is unable to purchase electricity from power plants and clear its mounting debt to contractors.
Under a five-year plan started in December 2010, and promoted as an “economic revolution” by former president Mahmoud Ahmadinejad, Iran began slashing three-decades-old costly food and energy subsidies, replacing them with equally costly and controversial cash payments.
Ardakani noted that "power export should be the function of the energy bourse and the government should step aside."
