Subsidy Reform Plan saves Iran $8.1 billion in power sector

Iran Materials 2 May 2012 17:39 (UTC +04:00)

Azerbaijan, Baku, May 02/ Trend F.Milad/

The Subsidy Reform Plan has saved some 100 trillion rials in the power sector, Energy Minister Majid Namjou said.

He added that some 20 billion kilowatt hours have been saved since the plan was launched in December 2010, the Fars News Agency reported.

Between February 2011 and February 2012, the government earned 510 trillion rials through implementing the Subsidy Reform Plan.

The second phase of implementing the plan has envisaged removing subsidies of some three million Iranian families. The Iranian government is planning to pay more cash subsidies to the economically vulnerable strata and cut subsidies of the well-off families.

The subsidy reform plan allows the Iranian government to gradually slash subsidies on fuel, electricity, and certain goods over the course of five years, with low-income families being compensated with direct cash handouts.