Iran’s energy ministry prepares plan to phase out old appliances

Azerbaijan, Baku, July 29/ Trend M. Moezzi

As part of the second phase of its Subsidy Reform Plan, Iran's government is preparing a plan to replace old household appliances with new, energy efficient models.

Iran's Energy Minister Majid Namjoo told the Iranian Students' News Agency (ISNA) that the plan requires the involvement of banks, the public and household appliance industry.

According to the plan, banks would offer low rate financing for people who want to purchase new appliances, Namjoo said.

Regarding domestic factories' capacity to manufacture much more appliances to meet predicted demand, the energy minister said that he was confident they could.

Launched in December 2011, the subsidy programme pays out $37 to Iranians while eliminating subsidies for energy carriers and some commodities. Thirty percent of the income from the subsidy reform program was to be routed to the industrial sector to help offset higher energy costs. That hasn't happened.

The second phase of the reform program was approved earlier this spring by Iran's Majlis (parliament). Although it hasn't gone into effect yet, this new phase will bring a new round of higher prices for energy carriers.