The Majlis Research Center says consumers who exceed reasonable limits constitute 15% of the total electricity subscribers and has called for revising electricity tariffs for large consumers as a solution to the power shortages seen every year in the hot summer season.
According to a study by the influential think tank, more than 50% of electricity consumption in peak hours is in households, Mehr News Agency reported.
Energy Ministry data show that large consumers (20% of households) are responsible for a massive 15% of the total power consumption. With 57,000 megawatts used in the summer, high consumers accounted for 8,000 MW.
Households this summer burnt a record amount of electricity pushing consumption growth rates 3.5 times over and above the global average. “While average global electricity consumption rises by less than 3% per annum, in Iran demand for power jumps to almost 10% on a yearly basis, which is alarming,” said Davood Aboutorabi, an energy expert.
One main reason why big consumers do not pay heed to repeated calls for judicious use of power is that prices are very low compared to most countries (rich and poor), experts say. Adopting an effective pricing policy and revising electricity tariffs could have the desired effect and help cut consumption rates.
At present, electricity generation costs about 1050 rial (2.5 cents) per kilowatt-hour for the Energy Ministry, but is sold at the subsidized rate of 650 rial (1.5 cents).
Modifying tariffs does not necessarily mean one size fits all. What is needed is a tangible difference between tariffs in peak and non-peak hours so that subscribers see the economic compulsion to consume less.
“The experience of developed countries shows that the only solution to impel subscribers to use power judiciously is revising prices and imposing a surcharge on heavy consumers that would cover real prices that include the cost for generation, dispatch and transmission," Ali Shams Ardekani, a veteran economist involved in the key power industry, said.
Total electricity production capacity stands at 77,000 MW, of which almost 62,000 MW, or 80%, are generated from thermal plants that burn fossil fuels. In addition, 12,000 MW are derived from hydroelectric plants.
