Iran to pay up to $180 mln in credits to electricity customers

Iran is to pay the equivalent of up to $180 million in credits to electricity customers across the country amid efforts to prevent power cuts during peak demand days this summer.

A spokesman of Iran’s state electricity company Tavanir said on Thursday that credits given to customers for their rational use of power in peak times will increase by two to three times this year to a total of 90 trillion rials ($180 million).

Mostafa Rajabi said the company had offered more than 30 trillion rials in electricity credits to household and industrial customers during peak consumption months last year.

Rajabi said the credits granted last summer led to a reduction of more than 4% only in household electricity use.

The official said Iran’s Energy Ministry expects demand for electricity in the country to reach a record high of 73 gigawatts (GW) this summer, adding that spending more on the electricity credit system would help overcome a potential shortage of 10 GW in peak times.

Iran started to offer electricity credits to customers for a first time last year under a scheme which granted 5,000 rials ($0.01) per kilowatt hour saved during peak times

Energy Ministry figures show more than 40% of Iranian electricity users benefitted from the scheme last year.

SS