63% Increase in Electricity Producer Price Index in Winter
A new report from the Statistical Center of Iran shows that the electricity producer price index in winter of last year increased by nearly 63 percent compared to the same season in 2019.
This index was 45.5 percent in autumn. For the entire year 1399 (2020-2021), the percentage change in the electricity producer price index was 46.6 percent.
Iran is the world’s largest provider of implicit subsidies for energy consumption. According to statistics from the International Energy Agency, Iran had approximately 52 billion dollars in implicit subsidies for the electricity sector in 2019; in other words, if the government exported the electricity produced by power plants instead of domestic sales, it would earn approximately 52 billion dollars in additional revenue.
Iran’s implicit electricity subsidies are more than four times that of China.
In recent years, the value of the rial has fallen sharply, causing Iran’s implicit energy subsidies to reach peak levels; that is, the price difference of energy in Iran and abroad has increased significantly.
Iran’s government recently launched a program to provide free electricity to households with low consumption. Additionally, electricity prices for households with medium electricity consumption increased by 7 percent and for high consumers by 14 percent.
The government has also announced that electricity prices for industries will increase from 80 tomans to 300 tomans.
Source: Radio Farda
