50% Capacity of Industrial Parks Halted Due to Power Outages in Iran

The representative of employers in the Supreme Labor Council states that the activity of '50% capacity' of industrial parks has been halted due to frequent power outages in Iran. These remarks come after ongoing power cuts affecting some industrial units due to energy shortages in Iran and increased electricity and gas consumption with the cold weather. Ali-Asghar Ahaniha said on Saturday, January 8, in an interview with the Tasnim news agency, referring to the contradiction of power cuts for industries with the 'Business Environment Improvement Law', stating: 'We had electricity problems in summer, and in winter, in addition to electricity, we also have gas issues.' Mr. Ahaniha added that whenever the government cuts electricity to private and cooperative companies due to temporary shortages, it is obligated to determine and announce how to 'compensate for the damages incurred' to these companies. The production halt in '22 cement factories' in Iran is due to gas shortages. The power cuts to industrial units occur while Article 25 of the Continuous Business Environment Improvement Law states: 'According to this law, during shortages of electricity, gas, or telecommunications services, industrial and agricultural production units should not be prioritized for electricity or gas cuts.' Alongside the winter restrictions on energy resources for industries, including electricity and gas, managers from various industries report reductions in production and the consequences of power outages in production units, including steel and cement. Iran's steel production, which was usually on the rise, faced a 5.1% decrease in the first seven months of the year 1403. The Research Center of the Parliament also reported last week that the economic growth of Iran's industrial sector has sharply declined since 1402, and this trend has intensified in the first half of 1403, moving towards 'zero'. The head of the syndicate of pharmaceutical, chemical, and pharmaceutical packaging producers stated on January 1 that electricity in the country's industrial parks is cut every other day and 'each time for 17 hours', and pharmaceutical companies are not exempt from these outages. Faramarz Ekhtaraei assessed the result of the existing challenges regarding the supply of electricity and gas to the pharmaceutical industries as 'an increase in the cost of medicine' and stated: 'If the government officials do not think about the industry, they should say goodbye to it, and the continuation of these conditions will lead to the closure of businesses one after another.' Mahmoud Najafi-Arab, the head of the Tehran Chamber of Commerce, also reported on July 23 about the power cuts to pharmaceutical factories due to electricity shortages. The production indices in listed companies have also declined in recent months, and it is said that one of the reasons for this is the frequent cuts of electricity and gas. The industrial production index of listed companies in Aban 1403 has decreased by 3% compared to the same period last year, and the three-month growth ending in Aban has also reached negative 2.7%. Meanwhile, warnings have also been raised about the layoffs of workers in production units due to frequent power cuts.