Power Industry Buckles Under the Burden of Subsidies, Mismanagement

Direct transfer of electricity bills consumers pay to the treasury is a wrong policy simply because the money is not used for critical development projects in the key power sector, a veteran economist says.
"As per law, power consumers pay the bills and the money goes directly to the treasury. The Management and Planning Organization is responsible for transferring the money to the Energy Ministry. However, the money is spent for paying cash subsidies," said Ali Shams Ardekani, head of the Energy Commission of Iran Chamber of Commerce, Industries and Mines.
Ardekani recalled that the private sector accounts for 40% of the power generation, meaning 40% of what the people pay should go to private contractors.