Energy
0

Massive Debts Hinder Power Development Ventures

Massive Debts Hinder Power Development VenturesMassive Debts Hinder Power Development Ventures

Debts of electricity subscribers to the Energy Ministry have exceeded $2 billion, a deputy energy minister said.
"The amount of unpaid dues to the ministry has amounted to a massive $2.3 billion," Reza Anjomshoa was quoted as saying by IRNA. 
According to the official, the outstanding debt has almost crippled the ministry's affiliated companies.
"Electricity generation costs, including the cost for generation and transmission, stands roughly at 3 cents per kilowatt-hour, yet it is sold to subscribers at 1.5 cents per kWh," Anjomshoa said, adding that the difference and the huge debts do not allow the ministry launch development ventures.
"The national grid has not been expanded enough in the last few years due to operational and financial constraints," he said.
He added that the power distribution network was largely deprived of investments in the last 10 years and that is why the infrastructure has remained underdeveloped.
The official noted that provincial distribution firms can neither expand the grid nor increase the power plants' efficiency unless the debts are settled. 

Premium

Subscribe to the Financial Tribune to continue reading this article or Log in to your account if you are already a subscriber.

Find out more about our subsciption plans here.

Add new comment

Financialtribune.com