Tavanir Elaborates on Stepwise Power Tariffs

In an effort to curtail electricity consumption and alleviate power demand that soared to record-high levels in recent days, Iran Power Generation, Distribution and Transmission Company (Tavanir) said it is charging consumers based on different consumption brackets, with the largest consumers charged up to three times the tariffs levied on regular users.

“Under a stepwise pricing scheme, subscribers who consume less than 100 kilowatt-hour per month pay much lower than the price paid by those using more than 200 kWh monthly,” Alireza Ahmadi-Yazdi, an official in charge of consumption department of Tavanir, was quoted as saying by IRNA on Sunday.

Having different consumption brackets and progressive increase in tariffs spurs consumers to moderate their usage and cut down on their power bills. In such a scheme, all consumers are charged at a fixed price per kilowatt-hour, but a surcharge will be imposed if consumption exceeds certain limits (brackets).

Ahmadi-Yazdi noted that users whose consumption does not exceed 100 kWh per month will pay 450 rials (about 1.3 cent) per kilowatt-hour, while subscribers who consume between 100 kW and 200 kW per month are charged a rate of 520 rials (1.5 cent) per kWh.

The official added that electricity tariff for people whose monthly consumption exceeds 200 kW will be 4 cents per kilowatt-hour, or about three times higher than that of normal consumers.

The announcement comes as the country's electricity consumption reached a peak of 55,400 megawatts on Wednesday, experiencing a 7% rise compared with the consumption level in the corresponding period of last year. The record is the highest since keeping records started nearly a century ago.

Iran's Energy Ministry says electricity demand is forecast to reach 56,000 MW this summer.

With an installed power production capacity of around 76,000 MW, Iran meets almost 80% of its electricity demand from aging thermal plants that have been operating for decades.

Iran's power consumption shoots up in summer as demand to feed air-conditioners soars.