Special Discount for Judicious Electricity Consumers

Special Discount for Judicious Electricity ConsumersSpecial Discount for Judicious Electricity Consumers

Facing a 3000 megawatt shortage for electricity in summer, Energy Minister Hamid Chitchian issued a directive to Tavanir and regional and distribution electric companies on giving discounts to judicious consumers in industry and agriculture sectors. The new discount tariff for August is 20 percent more than previous months, Mehr news agency reported.

According to the notification, industrial and agricultural subscribers who curb consumption during summer peak demand will be entitled to discounts from the energy ministry, the amount of which is formulated based on load reduction percentage in addition to contribution period.

Furthermore, Chitchian instructed Tavanir on how to pay to subscribers who participated in "Agriculture Sector Demand Response (DR) Program". Demand response (DR) is changes in electric usage by end-use customers from their normal consumption patterns in response to changes in the price of electricity over time. It is expected that demand response programs decrease electricity consumption or shift it from on-peak to off-peak periods depending on consumers’ preferences and lifestyles. The program will last until September 15 and if consumers cooperate, 20 percent will be added to their discount in August.

Based on the new instruction, in non-tropical areas, the maximum energy consumption during peak demand is 150 kWh; nevertheless, this amount can increase to 300 kWh in topical areas. Currently, industrial customers pay approximately 18 cents for each kWh. Iran’s electricity industry ranks 14th in the world and first in the Middle East in terms of electricity generation with an installed power generation capacity of 72,000 MW.

The country is the largest exporter and importer of electricity in the Middle East and exports electric power to Armenia, Pakistan, Turkey, Iraq, and Afghanistan. Azerbaijan and Armenia supply electricity to Iran under a swap agreement.