Power Outages for Industrial Units Increased to Two Days a Week; More Unemployment for Workers

On Wednesday, July 10, the Vice President of the Industry Commission of the Iran Chamber of Commerce announced that power outages for industrial units have increased to two days a week, and "some producers who need diesel to keep their generators running are accused of fuel smuggling." Abbas Jabalbarzi, in an interview with the government news agency ILNA, discussed the challenges of using generators in production units, stating: "Units must go through many bureaucratic hurdles to secure the diesel needed to keep the generators running, and they are even accused of potentially smuggling diesel; these issues impose hidden material and psychological costs on producers." He emphasized the lack of specialization in the self-sufficiency of production units located in industrial parks, stating that "to solve the electricity shortage problem, the Ministry of Energy, as the responsible authority for electricity supply, must increase production." This member of the Chamber of Commerce also mentioned the possibility of assistance from the "private energy producers for electricity generation," noting that "many combined cycle power plants established by the private sector are currently unprofitable because the Ministry of Energy does not pay their claims." Another proposed solution by the Vice President of the Industry Commission is to "realign energy prices" to attract "investments" towards electricity production. This government official did not comment on the reasons for the government's inability to provide accessible and affordable energy for citizens. Jabalbarzi emphasized that the electricity shortage leads to the closure of industrial units, deeming it a "wrong solution," and suggested that the Ministry of Energy should create a blackout purchase market and reduce household electricity costs, cutting off household electricity in these conditions to prevent industrial power outages. He did not elaborate on the consequences of the "blackout purchase market," which could encourage low-income families to sell "electricity rights as a basic livelihood need." In another report, a five-hour power outage at the Saipa car manufacturing plant caused "serious problems in the production process, leaving workers idle and uncertain for hours." An informed source confirmed the prolonged power outage to ILNA, stating that "Saipa's follow-ups went unanswered, and no one was accountable." Amir Kabir Student Newsletter also reported power outages at Sharif University of Technology. The "Tehran Electricity Management and Dispatch Center" completely cut off electricity to Sharif University due to high electricity consumption; according to the electricity department, "Sharif's normal electricity consumption is around 4.5 megawatts, which should be reduced by thirty percent, or 1.5 megawatts, during peak hours, but only about 0.9 megawatts were reduced." Reports indicate that this summer, the government has also been unable to meet the country's electricity needs, and large industries, the agricultural sector, and even household consumers will face electricity rationing. Experts attribute the lack of a program and behavior outside economic frameworks in developmental issues as the main cause of the energy imbalance, believing that with this style of governance, there is no hope for improvement. The newspaper "Donya-e-Eqtesad" wrote about the reasons for the current situation in the country: "The mismatch between income and expenses has led investors to show little interest in the electricity industry and prefer to invest in other industries, while the government, which pays heavy subsidies to household and agricultural consumers, is unable to build power plants or even pay the claims of power plant operators, contractors, and equipment manufacturers in the electricity industry." In recent years, the electricity shortage crisis in summer and gas shortage in winter has become a challenge for the people and the government of the Islamic Republic, which many analysts believe stems from the ineffective policies of the Iranian government over the past decades. The Ministry of Industry, Mine, and Trade announced the intensification of restrictions on electricity for industries. Research report: Intensification of the water crisis in Iran alongside a decrease in the amount of water extracted from wells. An energy expert: We will soon reach complete gas imbalance.