Production of Listed Companies Drops by Up to 70% Due to Electricity Supply Crisis

The newspaper 'Shargh' has reported on the challenges in the production sector and the impact of power outages on the country's production process. An examination of the performance of 120 listed companies shows that nearly 60% of these companies have faced a decline in production in the first four months of this year compared to the same period last year, with some companies experiencing a drop of up to 70%. Shargh noted that the main cause of the production decline is power outages and instability in the energy supply network. The newspaper also quoted a member of the Energy Commission of the Tehran Chamber of Commerce, stating that estimates indicate that power outages have resulted in a loss of four to five billion dollars for the petrochemical, steel, and cement industries. It emphasized that, specifically, the steel industry is facing losses of about three billion dollars at this stage. Consequently, industry activists believe that every time industries are turned on and off, it takes about 24 hours, and each 24-hour power outage increases losses. Shargh concluded that this trend leads to a rising price of steel ingots, cement, and other industrial products, ultimately placing the main burden of these losses on the people. The newspaper 'Donya-e-Eqtesad' also warned in its current issue about the implications of power outages on people's livelihoods and the emergence of severe inflation, stating: 'Alongside sanctions, a new challenge named 'energy shortage' has been added to Iran's economic problems.' According to this newspaper, the energy shortage, especially in the electricity and gas sectors, has not only put pressure on industries and production sectors but can also have significant negative effects on inflation and economic growth as a new supply shock. The author of the Donya-e-Eqtesad report emphasized that power outages have led to increased production costs, which naturally results in higher final prices for goods and services. It was noted that reduced production capacity leads to decreased supply in the market, causing price increases and consequently inflation. Donya-e-Eqtesad considers the severe inflationary impacts of this trend, which could affect the livelihoods of a significant portion of society. The newspaper also discussed this issue in an interview with the secretary of the Federation of Food Industry Associations, quoting Mohsen Naqashi, who stated: 'According to the law, the priority for electricity supply is with industrial parks and production units, and the electricity of these sectors should not be cut off at all. Unfortunately, power outages have created numerous problems for the food industries.' Naqashi emphasized that the losses from power outages in dairy product production units are much greater because, for example, power outages during the pasteurization process of milk incur heavy losses to the factory. Previously, the governor of Lorestan had stated that the cutting and restoration of electricity for production units in the province due to national decisions is 'an injustice to industrialists.' It is noteworthy that power outages for industries began over two months ago, initially occurring once a week, but as the electricity supply crisis intensified in Iran, this frequency increased to twice a week. In this context, Mohammad Bahrinayan, a development researcher and industrialist, reported that the losses from shutting down industry each day in Iran exceed 5,715 billion tomans. Hashim Orayi, a professor at Sharif University of Technology, also stated, 'The daily loss from power outages to industry is 5,715 billion tomans.' The newspaper 'Ham-Mihan' also mentioned the problems created for people and industries, stating: 'Today, the state of electricity and energy in the country is a complete reflection of this government's claims. Energy, which has been a strength of the country and the Iranian government, has turned into its Achilles' heel under this government.' However, some experts do not attribute the energy crisis to a specific government, believing that this situation is a product of the Islamic Republic's governance over the past four decades. A look at the events in the energy sector shows that under various governments, including that of Hassan Rouhani, people have experienced power outages, fuel shortages, and interruptions in water and gas supply, with the intensity of these conditions being determined by the weather. Published reports indicate that while the Islamic Republic has spent a significant portion of the country's capital over the past 20 years under the pretext of 'electricity production' to develop its nuclear programs and 'complete the Bushehr power plant,' people have faced the recurring problem of widespread power outages during the summer and rising temperatures in Iran. Experts believe that the lack of planning and behavior outside the economic frameworks in developmental discussions is the main cause of the imbalance in the energy sector and argue that under this governance style, there is little hope for improvement.