Demand for Iranian electricity to increase by 10 per cent

Iran Materials 9 January 2012 13:55 (UTC +04:00)

Azerbaijan, Baku, Jan. 9/ Trend M. Moezzi

Electricity use in Iran could increase up to 10 per cent by this summer; Mehr news agency reported.

Although the country's energy subsidies were stopped in 2010, Iran's peak power consumption climbed to 42,248 Megawatts (MW) last summer, said Homayoun Haeri, managing director for the Iran power generation transmission and distribution management company (TAVANIR).

The Iranian government pays each citizen $45 a month as compensation for commodities and energy subsidies which were cut when the targeted subsidies programme began. Cutting out the energy subsidies was expected to drive down Iranians' energy consumption.

While dropping the subsidies has brought an overall drop in electricity use, some summer days also brought greater demand.

Energy officials foresee a 10 per cent increase in consumption by next summer and have prepared for the days when demand peaks, said Mr. Haeri.

The second phase of Iran's targeted subsidies programme is to include an increase in electricity prices and although suggestions have been submitted to the government, nothing has been decided. Iran's energy minister said last week the government wasn't allowed to increase the price of electricity by more than 20 per cent.