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Iran predicts 50 percent increase in energy revenues by removing subsidies

Oil&Gas Materials 24 May 2011 18:12 (UTC +04:00)

Azerbaijan , Baku, 24 May/Trend/

Iran 's implementation of removing subsidies will increase electricity and water revenues to 50 percent, ISNA reported quoting Energy Minister Majid Namjou as saying.

Iran 's electricity and water revenues will increase to 50 percent annually on the first phase of removing subsidies and improve energy companies' financial states and better position for future allocations, he said.

Due to removing subsidies more than eight billion kilowatt per hours reduced in electricity consumption. Currently Iran's electricity consumers are 25,770,000 while 21 million are domestic consumers using 33.6 percent of electricity and 45.4 percent of country's electricity is consumed by industry and agriculture sectors.

Iran installed new thermal plants to save energy sources, the launch of Damavand gas plant into combined cycle is a major step, he said.

The government is to transfer additional funds to private accounts of the country's 72 million citizens - $44 per each and to increase price of goods to 20 percent.

Iran insists removing subsidies are not related to western sanctions and that United Nation Security Council (UNSC) sanctions have failed to pressure the country

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