Iran sells electricity, but power cuts and layoffs likely

Majid Namjou, Iranian Minister of Energy, said that many countries are in line to become potential consumers of electricity from Iran. Among them Azerbaijan, Russia, Pakistan, India, Jordan and others. He added that Iran could soon become an energy hub for Europe itself.  

But for many these flowery words hide a dire reality. Mohammad Parsa, president of the Iranian electricity industry, said that the industry is crippled by debts due to lack of government funding. "If the situation is not resolved, we will not be able to honour our commitments and we will even lose our foreign market," he warns. The deficit, he adds, could lead to blackouts across the nation.

All this has an impact on workers. Two weeks ago, the lack of public funding has led to the closure of three electrical installations. The loss of jobs is estimated at between 1500 and 2 thousand, Parsa reveals. The president of the union said that in recent years there has been a downturn in the market, mainly because of international competition and the loss of Tehran’s regional power.  

The Ministry for Energy is behind with payments for as much as 5 billion U.S. dollars, not including interest accrued. Without at least a partial payment of debts by the public sector, many companies will be forced to close by the end of March.