Interview
Luay Khatib, Iraq’s minister for electricity, speaks to Rudaw in Baghdad, July 31, 2019. Photo: Rudaw TV
Electricity production in Iraq has risen by 5,000 megawatts in the past year and the federal government has detailed plans to improve the nation’s ramshackle infrastructure in coordination with the world’s top energy firms, Luay Khatib, Iraq’s minister for electricity, told Rudaw in an interview aired July 30.
Khatib said the biggest problems facing the country’s energy sector relate to the transfer and distribution of electricity.
The war with the Islamic State group (ISIS) dealt a heavy blow to the electricity sector, he said, destroying many of the production, transfer, and distribution networks in the areas it controlled when militants seized vast areas of Iraq in 2014.
The price of electricity is cheaper in Iraq than other part of the region, Khatib claimed, although the government is reviewing prices to take into account the needs of low-income consumers.
He urged the public to conserve electricity and to cooperate with authorities sent to crack down on wasteful consumption.
Khatib also said his ministry is prepared to coordinate with its counterpart in the Kurdistan Region, as they are both part of a single federal country and must help each other.
Rudaw: What is the state of Iraq’s electricity sector?
Summer is of course the peak, and we don’t have control over temperature levels. 
Luay Khatib: Compared to previous years, the state of electricity is improving. I have often given statements to news agencies and we have statistics for what we say. If you look into the increase of electricity this year, you can see improvement in production levels are not less than 25 percent compared to last year. For example, during June, July, and August last summer, electricity production was between 13,500 to 14,000 megawatts. Currently, electricity production stands between 18,000 to 19,000 megawatts. This increase wouldn’t have been possible had it not been for the endeavors made by national cadres, a feasible plan and support from the Council of Ministers, especially from the Ministerial Council for Energy Affairs which I am a member of.
It appears your electricity production has improved. Looking at your building when I came, I was struck by the air conditioners that have covered the face of your building. It looks like the condition of your electricity is good.
You know that the increase in demand for electricity in Iraq annually has now reached 7 to 10 percent due to the increase in population and housing. This requires new produced energy. Parallel to this energy, there are transportation and distribution projects which are no less important than the significance of increasing production. And this puts more responsibility on our shoulders to execute very big projects. Summer is of course the peak, and we don’t have control over temperature levels. What we control is our work, the execution of projects, and delivering services to people.
One of the things the Ministry of Electricity emphasizes is electricity consumption by people who are urged to consume it responsibly so that other people have access to electricity too. In Kurdistan, we ask people to switch off a light in order to lighten another home. Have you done this here? How can people be made to not use electricity excessively?
If we don’t resolve excessive and indiscriminate consumption, this crisis will remain unresolved.
With regard to our campaigns to spread awareness of electricity consumption, this is addressed in the instructions of the Executive Council and Council of Ministers along with all ministries and establishments for better consumption. In our awareness programs, we try to cooperate with people to better consume electricity. However, spreading awareness alone is not enough. In the end, this will serve the process of responsible consumption of electricity and reviewing electricity charges or the cost of energy production. Electricity fares are the cheapest in Iraq compared to some regional countries. For example, in some Gulf countries, the cost of electricity production, transfer, and distribution is 10 times the price we sell it for to people here in Iraq. It might be 20 times more in Jordan. That is why we need to take this into consideration. We will review electricity prices in a way it is not costly to people, especially to those who have a limited income or to the poor. But this phase will come after the completion of very big projects to ensure necessary production and improve the transfer and distribution system.
Regarding consumption, before I came to interview you, I asked some people what they thought of electricity. They said there is national electricity for two hours and then it goes out for two hours, adding sometimes there is electricity for three hours and then goes out for three hours. You mentioned that you have increased electricity production. But this doesn’t reach people. And according to annual reports published by the Ministry of Electricity in 2018, much of the electricity goes to other things like trade and government institutions. Nearly 60 percent of the electricity reaches people.
Regarding [electricity] waste, this is due to the burden on the network and we are working to repair it. And regarding the big waste, this is because of excessive consumption. We should take into account excessive consumption that might be due to consumers in the system or the houses built illegally. The number of consumers is nearly 4 million. According to our surveys, nearly 50 percent of consumers consume electricity excessively. … We are speaking about consumers as units, not persons, likely residential, agricultural, industrial and trade units. If we don’t resolve excessive and indiscriminate consumption, this crisis will remain unresolved. We have done our part to cooperate with people through sending teams to crack down on excessive consumption. Electricity is a national responsibility and people should be committed to paying charges. If people don’t impede our teams cracking down on excessive electricity consumption, we at the Ministry of Electricity will be committed to delivering services and executing big projects to account for the needs of the country. And for this, we need the support of parliament in terms of legislation to reinvigorate the Iraqi economy.
How much debt are people and government institutions in for their consumption of electricity? Are Iraqi officials paying their electricity bills?
I pay the bill on time. I pay my bill just like any other ordinary citizen.
This is a multidimensional question. Concerning electricity bills, people owe us a lot of money because of several reasons, notably reasons to do with issuing bills or sluggishness of some of the companies that collect the money or it might be because of people themselves refusing to pay the money. We have formed a committee to review payment mechanisms and the performance of these companies.
Do you yourself have any outstanding electricity bills?
No. I pay the bill on time. I pay my bill just like any other ordinary citizen.
You said electricity is a national product and that people should consume it responsibly. I was sitting in your guest room, which is a 4-by-5-meter room; I noticed that there were 29 light bulbs in the room. Is this responsible consumption of electricity?
In fact, I didn’t set up these lights when I assumed office. And we have issued instructions advising that we all use low voltage light bulbs. If I could, I would even change the design of all offices.
You have been to Europe and the US where people don’t use high voltage light bulbs much … and [there is a conservationist] culture in these countries. Is it not better to use central air-conditioning systems rather than these external air conditioners mounted outside buildings? Could you start it from here at your ministry so you can become a model and inspiration for others? I understand you have inherited this system from the previous ministry. Your building has a central air-conditioning system, but it doesn’t work. Do you have plans to do this?
Mr Hiwa, you touched on details of some serious and very important questions. Concerning the review of energy reforms, there should be a state policy about this issue. There are some questions which should be considered, besides technical efforts to increase production levels or producing another energy facility; for example, repairing the transfer and distribution system. There are many questions. First, repairing the fees in concert with the Ministry of Finance and Ministry of Social Affairs to provide help through welfare payments. This is the first thing. Second, the subject of improving the trade system in a way we can work with relevant ministries to make laws and issue instructions for the equipment that is imported. The imported equipment should be environmentally-friendly and not waste energy. When you visit developed countries, if you want to buy or rent a house, they will give you a paper on how to use water, air conditioners, and electricity. To what extent is this environmentally-friendly? They give it to you in a table. This should become part of the culture and state laws. This is what we will be trying to achieve in this cabinet. This is what we mean when we speak about improving the electricity sector, we mean a shared responsibility among all. This is not the responsibility of one ministry. There is the Ministry of Trade, Ministry of Housing, the Ministry of Culture, and others including media outlets which have the biggest responsibility to communicate these important messages to the people.
Last week, you said you have two plans to fulfil – a strategic plan and a short-term one to be done in six or eight months. What are these two plans in brief?
This is not the responsibility of one ministry. There is the Ministry of Trade, Ministry of Housing, the Ministry of Culture, and others including media outlets which have the biggest responsibility to communicate these important messages to the people.
Since we have assumed the ministry, we started designing a rapid plan to deliver services quickly in 2019 and 2020 in a way that serves the economic system and delivers services to people. Parallel to this plan, we have a strategic plan that concerns some international agreements with international companies. For example, we have an agreement with Siemens which we signed in Berlin. We also have some agreements with General Electric and neighboring countries to build a futuristic market for electricity. It is not only to import energy. Rather, it is to export energy to other countries. This way, Iraq will become the heart of trade exchanges in the energy market. These topics are put in a plan which we call a roadmap or the plan of the Ministry of Electricity. We have chosen the best projects from the companies who offered us plans. We will incorporate whatever we deem appropriate into the national plan.
Our biggest problem in the electricity sector is in transfer and distribution. For example, the war against the Islamic State put substantial strains on the system, destroying over 20 percent of transfer networks, destroying more 25 percent of production capacity, destroying the distribution networks in all the provinces they had controlled.
How is your relationship with the Kurdistan Region which wants electricity to be given from Mosul to Fayeda and Duhok and you want the Kurdistan Region to provide electricity to Kirkuk too. How do you arrange for this?
At the end of the day, we live in one federal country in which we should do our best to implement the articles of the constitution to develop the economy in all Iraqi regions and provinces.
I first want to congratulate the new government in the Kurdistan Region which recently assumed power. I contacted my counterpart in the Region, Kamal Mohammed Salih, and congratulated him. Our door is open and we are prepared to cooperate in all energy matters. At the end of the day, we live in one federal country in which we should do our best to implement the articles of the constitution to develop the economy in all Iraqi regions and provinces. And we will review all the agreements in a way so that they serve all parties and ensure balance so that they strengthen relations between the federal government and the regional government. This is our policy.
Do you intend to give electricity from Mosul to Duhok and Fayeda?
Certainly. We need to cooperate on the question of energy. If economic proposals are promising, in the end, what makes the contract between the province and the Region a success, the contract for importing and buying energy, it will run the economic equation. Whenever there is an economic equation that is suitable and serves all.
Translated by Salim Ibrahim
Khatib said the biggest problems facing the country’s energy sector relate to the transfer and distribution of electricity.
The war with the Islamic State group (ISIS) dealt a heavy blow to the electricity sector, he said, destroying many of the production, transfer, and distribution networks in the areas it controlled when militants seized vast areas of Iraq in 2014.
The price of electricity is cheaper in Iraq than other part of the region, Khatib claimed, although the government is reviewing prices to take into account the needs of low-income consumers.
He urged the public to conserve electricity and to cooperate with authorities sent to crack down on wasteful consumption.
Khatib also said his ministry is prepared to coordinate with its counterpart in the Kurdistan Region, as they are both part of a single federal country and must help each other.
Rudaw: What is the state of Iraq’s electricity sector?
Summer is of course the peak, and we don’t have control over temperature levels. It appears your electricity production has improved. Looking at your building when I came, I was struck by the air conditioners that have covered the face of your building. It looks like the condition of your electricity is good.
You know that the increase in demand for electricity in Iraq annually has now reached 7 to 10 percent due to the increase in population and housing. This requires new produced energy. Parallel to this energy, there are transportation and distribution projects which are no less important than the significance of increasing production. And this puts more responsibility on our shoulders to execute very big projects. Summer is of course the peak, and we don’t have control over temperature levels. What we control is our work, the execution of projects, and delivering services to people.
One of the things the Ministry of Electricity emphasizes is electricity consumption by people who are urged to consume it responsibly so that other people have access to electricity too. In Kurdistan, we ask people to switch off a light in order to lighten another home. Have you done this here? How can people be made to not use electricity excessively?
If we don’t resolve excessive and indiscriminate consumption, this crisis will remain unresolved. Regarding consumption, before I came to interview you, I asked some people what they thought of electricity. They said there is national electricity for two hours and then it goes out for two hours, adding sometimes there is electricity for three hours and then goes out for three hours. You mentioned that you have increased electricity production. But this doesn’t reach people. And according to annual reports published by the Ministry of Electricity in 2018, much of the electricity goes to other things like trade and government institutions. Nearly 60 percent of the electricity reaches people.
Regarding [electricity] waste, this is due to the burden on the network and we are working to repair it. And regarding the big waste, this is because of excessive consumption. We should take into account excessive consumption that might be due to consumers in the system or the houses built illegally. The number of consumers is nearly 4 million. According to our surveys, nearly 50 percent of consumers consume electricity excessively. … We are speaking about consumers as units, not persons, likely residential, agricultural, industrial and trade units. If we don’t resolve excessive and indiscriminate consumption, this crisis will remain unresolved. We have done our part to cooperate with people through sending teams to crack down on excessive consumption. Electricity is a national responsibility and people should be committed to paying charges. If people don’t impede our teams cracking down on excessive electricity consumption, we at the Ministry of Electricity will be committed to delivering services and executing big projects to account for the needs of the country. And for this, we need the support of parliament in terms of legislation to reinvigorate the Iraqi economy.
How much debt are people and government institutions in for their consumption of electricity? Are Iraqi officials paying their electricity bills?
I pay the bill on time. I pay my bill just like any other ordinary citizen. Do you yourself have any outstanding electricity bills?
No. I pay the bill on time. I pay my bill just like any other ordinary citizen.
You said electricity is a national product and that people should consume it responsibly. I was sitting in your guest room, which is a 4-by-5-meter room; I noticed that there were 29 light bulbs in the room. Is this responsible consumption of electricity?
In fact, I didn’t set up these lights when I assumed office. And we have issued instructions advising that we all use low voltage light bulbs. If I could, I would even change the design of all offices.
You have been to Europe and the US where people don’t use high voltage light bulbs much … and [there is a conservationist] culture in these countries. Is it not better to use central air-conditioning systems rather than these external air conditioners mounted outside buildings? Could you start it from here at your ministry so you can become a model and inspiration for others? I understand you have inherited this system from the previous ministry. Your building has a central air-conditioning system, but it doesn’t work. Do you have plans to do this?
Mr Hiwa, you touched on details of some serious and very important questions. Concerning the review of energy reforms, there should be a state policy about this issue. There are some questions which should be considered, besides technical efforts to increase production levels or producing another energy facility; for example, repairing the transfer and distribution system. There are many questions. First, repairing the fees in concert with the Ministry of Finance and Ministry of Social Affairs to provide help through welfare payments. This is the first thing. Second, the subject of improving the trade system in a way we can work with relevant ministries to make laws and issue instructions for the equipment that is imported. The imported equipment should be environmentally-friendly and not waste energy. When you visit developed countries, if you want to buy or rent a house, they will give you a paper on how to use water, air conditioners, and electricity. To what extent is this environmentally-friendly? They give it to you in a table. This should become part of the culture and state laws. This is what we will be trying to achieve in this cabinet. This is what we mean when we speak about improving the electricity sector, we mean a shared responsibility among all. This is not the responsibility of one ministry. There is the Ministry of Trade, Ministry of Housing, the Ministry of Culture, and others including media outlets which have the biggest responsibility to communicate these important messages to the people.
Last week, you said you have two plans to fulfil – a strategic plan and a short-term one to be done in six or eight months. What are these two plans in brief?
This is not the responsibility of one ministry. There is the Ministry of Trade, Ministry of Housing, the Ministry of Culture, and others including media outlets which have the biggest responsibility to communicate these important messages to the people. Our biggest problem in the electricity sector is in transfer and distribution. For example, the war against the Islamic State put substantial strains on the system, destroying over 20 percent of transfer networks, destroying more 25 percent of production capacity, destroying the distribution networks in all the provinces they had controlled.
How is your relationship with the Kurdistan Region which wants electricity to be given from Mosul to Fayeda and Duhok and you want the Kurdistan Region to provide electricity to Kirkuk too. How do you arrange for this?
At the end of the day, we live in one federal country in which we should do our best to implement the articles of the constitution to develop the economy in all Iraqi regions and provinces. Do you intend to give electricity from Mosul to Duhok and Fayeda?
Certainly. We need to cooperate on the question of energy. If economic proposals are promising, in the end, what makes the contract between the province and the Region a success, the contract for importing and buying energy, it will run the economic equation. Whenever there is an economic equation that is suitable and serves all.
Translated by Salim Ibrahim
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