KRG raises electricity rate by 20%

01-02-2021
Dilan Sirwan
Dilan Sirwan @DeelanSirwan
A+ A-
ERBIL, Kurdistan Region — The Kurdistan Regional Government’s (KRG) Ministry of Electricity is increasing the price of national electricity by 20 percent, the spokesperson told Rudaw on Monday.

“Since the expenses of electricity production is in dollars, and the income is in dinars, the ministry has decided to increase the price of national electricity by 20 percent, given that the dollar-dinar exchange rate has increased,” Ministry of Electricity spokesperson Omed Ahmad told Rudaw English on Monday.

Ahmed said the rate hike should not be seen as “an increase in prices, but rather a step toward balancing the problem dinar devaluation has caused.”

In December, Baghdad announced a devaluation of the dinar as part of economic reforms to combat a national financial crisis.

The new price is 18 dinars per kilowatt hour for the first 450 kW used, up from 15 dinars. 

The Kurdistan Region and Iraq suffer from chronic electricity shortages and dilapidated infrastructure. The failure of successive Iraqi and Kurdish governments to alleviate the chronic shortages since the 2003 war has been a near-constant source of public anger.

The region has 14 power plants, which altogether are currently providing nearly 4,000 megawatts of power, a record high in the Kurdistan Region according to data provided by Ahmad. However national electricity is only available an average of 10-12 hours per day and up to 16 hours in warmer areas.

"The reason behind the low hours of electricity is because despite our production being very high by global standards, the demand for electricity is currently at 7,300 megawatts, which is way higher than our production," Ahmad explained. 

Theft of electricity and excessive consumption has exacerbated power shortages. In response, the KRG introduced new meters back in 2018. However, it failed to enforce their installation or monitor their usage, with residents finding ways to manipulate the devices.

The KRG approved a proposal in 2020 to privatize the Kurdistan Region's electricity sector, which the spokesperson claimed is getting close to implementation.
 

Comments

Rudaw moderates all comments submitted on our website. We welcome comments which are relevant to the article and encourage further discussion about the issues that matter to you. We also welcome constructive criticism about Rudaw.

To be approved for publication, however, your comments must meet our community guidelines.

We will not tolerate the following: profanity, threats, personal attacks, vulgarity, abuse (such as sexism, racism, homophobia or xenophobia), or commercial or personal promotion.

Comments that do not meet our guidelines will be rejected. Comments are not edited – they are either approved or rejected.

Post a comment

Required
Required
 

The Latest

An image of SIM cards in the Kurdistan Region posted on November 3, 2024. Photo: Interior Ministry FB

Kurdish ministry warns of fines for unregistered SIM card sales, criminal usage

The Kurdistan Regional Government (KRG) Ministry of Interior announced on Sunday that sellers of unregistered SIM cards will face heavy fines, warning the practice can facilitate criminal activity and vowing legal action to protect citizens.