7 Percent Rise in Energy Tariffs Is a Non-Starter

The 7% rise in water and electricity prices that take effect as of today (April 21) is no panacea for the deepening financial issues that have impaired the Energy Ministry, head of the Iran Association of Energy Service Companies said.
“Disparities between real electricity production costs including generation and transmission, and the revenue of the state-run Iran Power Generation, Distribution and Transmission Company (Tavanir) is so huge that raising tariffs even by 20% cannot help,” Saeed Mohazab Torabi was quoted as saying by ISNA.
It is inconceivable that a small increase in prices can help tackle a problem that will worsen in the coming years, he said. Power generation in Iran costs at least 3 cents per kilowatt-hour but consumers pay less than 1 cent per kWh.