Iran’s Power Outages and Shortages Cost $2 Billion Annually

Power outages and electricity shortages in Iran continue to persist and have fueled discontent and protests; a problem that not only negatively affects the daily lives of citizens but has also affected various government and private institutions.

Mohammad Malaki, a member of the Power Producers Syndicate, estimated in a press conference that the losses and damages resulting from power shortages and outages in the country amount to $2 billion annually.

Simultaneously, Ali Kamiar, the prosecutor of the Court of Accounts, stated that a cryptocurrency mining farm has been discovered in Tehran that consumes as much electricity as 10 provinces, yet the power company remained unaware.

Some Iranian officials link power shortage problems to cryptocurrency production.

This comes as a member of the Power Producers Syndicate states that the impact of this is not significant, and the most important factor causing blackouts is the lack of investment in the power generation sector.

The continued power outages and shortages in Iran have led to price increases across various industrial sectors in the country.

Ismail Kazemi Qahi, head of the Building Materials Sellers Union, stated: “Cement is scarce in the market and the price of each bag has reached 60,000 tomans, and if power cuts continue, the price of each bag of cement could exceed 60,000 tomans.”

Steel industry managers have also pointed to the impact of power shortages on reducing production and increasing iron prices, saying that power outages have caused billions of dollars in losses to Iran’s steel industry, which in turn drives up the price of steel products in the country.

Less than a week ago, Tavanir Company announced a two-week shutdown of cement, petrochemical, and steel industries to address the power shortage crisis.

In the private sector and free professions, the absence and shortage of electricity have also caused numerous losses for operators in this field, which could lead to the closure of their businesses.

Source: Voice of America