Iraqis will
receive their first 1,000 kilowatt-hours of electricity for free each month,
the Ministry of Electricity said on Saturday, following growing protests over
poor electricity supply and basic services.
In the most
recent demonstration, hundreds of people gathered in Baghdad on Friday to
protest shoddy services and sporadic power, as turmoil rocks other parts of the
Arab world.
Acting
Electricity Minister Hussain al-Shahristani said the subsidy would apply to all
Iraqis but was mainly aimed at helping around 8 million low-income Iraqis.
Consumers
who use more than 1,000 KWH will pay for what they use over the exempted
amount.
Last
October, Iraqis began receiving electricity bills containing a 100 percent
price increase following a government decision aimed at encouraging consumers
to economise and to help tackle crippling power shortages. The price rose from
10 to 20 Iraqi dinars, less than $0.02, for the first 1,000 KWH.
Under the
new pricing scheme, consumers will pay 50 dinars per KWH for between 1,000 and
2,000 KWH, 80 dinars for between 2,000 and 3,000 KWH, and higher tariffs for
higher amounts.
Electricity
demand in Iraq has risen since the 2003 U.S. invasion but the national grid
still only supplies a few hours of power per day, a major cause of discontent
in a country that sits atop some of the world’s biggest oil reserves.
“Iraq’s
current production is 7,000 megawatts, while actual demand is 12,000 megawatts,
so we have a shortage of 5,000 megawatts,” Shahristani told reporters.
Iraq has big
plans to install turbines and capture gas at oilfields to ramp up electricity
production, and needs to spend $77 billion to improve the power sector by 2030,
according to a master plan.
Shahristani
said power imports from Iran will be increased to 800 megawatts from 500
megawatts, while talks are being held with Turkey and Syria to import about 300
megawatts more.
Rehabilitation
and maintenance work on existing power stations will supply an additional 1,500
megawatts before this summer, Shahristani added.
“Despite
all efforts, our production capacities will stay below required level needed
for next summer”, he said.
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