{"id":325407,"date":"2024-10-30T22:23:21","date_gmt":"2024-10-30T21:23:21","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/?p=325407"},"modified":"2024-10-30T22:23:21","modified_gmt":"2024-10-30T21:23:21","slug":"iran-news-looming-electricity-price-hikes-and-budget-cuts-spark-concerns-over-renewed-social-unrest","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/iran-news-looming-electricity-price-hikes-and-budget-cuts-spark-concerns-over-renewed-social-unrest\/","title":{"rendered":"Iran News: Looming Electricity Price Hikes and Budget Cuts Spark Concerns Over Renewed Social Unrest\u00a0"},"content":{"rendered":"<p style=\"text-align: justify;\"><img decoding=\"async\" class=\"alignnone size-full wp-image-325410\" src=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2024\/10\/iran-energy-bill.jpg\" alt=\"\" width=\"1000\" height=\"567\" srcset=\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2024\/10\/iran-energy-bill.jpg 1000w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2024\/10\/iran-energy-bill-300x170.jpg 300w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2024\/10\/iran-energy-bill-768x435.jpg 768w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2024\/10\/iran-energy-bill-741x420.jpg 741w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2024\/10\/iran-energy-bill-150x85.jpg 150w, https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2024\/10\/iran-energy-bill-696x395.jpg 696w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">The Iranian government\u2019s recent announcement of electricity price hikes, particularly affecting high-usage households, is fueling public outrage, especially as millions of low-income families already struggle under inflation and economic hardship.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">The regime\u2019s Energy Minister <\/span><a href=\"https:\/\/www.mehrnews.com\/news\/6271035\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Abbas Aliabadi confirmed<\/span><\/a><span data-contrast=\"auto\"> that under the \u201cElectricity Industry Deregulation Act,\u201d state support for energy subsidies will diminish, making citizens responsible for purchasing electricity themselves. \u201cThe government will no longer subsidize electricity payments,\u201d Aliabadi told state media, stressing that heavy consumers must now buy power from the open market or renewable sources. However, without sufficient renewable infrastructure, critics argue that lower-income households, already financially burdened, will likely face inflated bills and potential cutoffs.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">This development comes amid longstanding public frustration over inflation and subsidy cuts, which have previously sparked widespread unrest. Notably, in May 2022, <\/span><a href=\"https:\/\/www.reuters.com\/world\/middle-east\/soaring-bread-prices-spark-protests-shop-fires-iran-irna-2022-05-13\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">protests erupted across<\/span><\/a><span data-contrast=\"auto\"> Iran in response to price hikes in basic goods, sparked by policies that removed subsidies and deregulated flour prices. Regions across the country\u2014from Khuzestan to Tehran\u2014saw clashes with security forces, internet shutdowns, and significant crackdowns that only intensified public anger.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/Iran?src=hash&amp;ref_src=twsrc%5Etfw\">#Iran<\/a> Faces Escalating Crisis Amid Power Outages and Economic Woes<a href=\"https:\/\/t.co\/E1S7n7ZB9f\">https:\/\/t.co\/E1S7n7ZB9f<\/a><\/p>\n<p>&mdash; NCRI-FAC (@iran_policy) <a href=\"https:\/\/twitter.com\/iran_policy\/status\/1827805648802771196?ref_src=twsrc%5Etfw\">August 25, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">The current <a href=\"https:\/\/www.ncr-iran.org\/en\/news\/economy\/irans-1404-budget-proposal-fuel-price-hikes-defense-spending-boost-and-increased-taxation-amid-economic-strain\/\">1404 budget proposal<\/a> continues this trend, allocating substantial funds to the military and government sectors while leaving essential public services underfunded. Notably, the government has proposed a 20% wage increase for public sector employees, yet the official inflation rate currently sits at 30-40%, meaning most Iranians will feel no relief from rising costs.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Fearing the social backlash, MP Hassanali Akhlaghi Amiri criticized the proposal, questioning how citizens can manage their expenses under these conditions. \u201cWith inflation high, a 20% wage increase falls far short, leaving families struggling to meet their basic needs,\u201d he remarked, pointing out that unresolved issues around fuel and exchange rates only deepen the financial uncertainty.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Iran\u2019s ongoing energy crisis further complicates the situation. This summer, the country faced a 20,000 MW electricity shortfall that forced rationing across residential, agricultural, and industrial sectors. The government blames this on rising domestic demand, while experts attribute it to mismanagement, inefficiencies in thermal power plants (operating at only 37% efficiency), and an outdated grid system. According to <\/span><a href=\"https:\/\/hammihanonline.ir\/%D8%A8%D8%AE%D8%B4-%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF-5\/24456-%D9%82%DB%8C%D9%85%D8%AA-%D8%A8%D8%B1%D9%82-%D9%85%D8%B4%D8%AA%D8%B1%DA%A9%D8%A7%D9%86-%D9%BE%D8%B1%D9%85%D8%B5%D8%B1%D9%81-%D9%BE%D9%84%DA%A9%D8%A7%D9%86%DB%8C-%D8%B2%DB%8C%D8%A7%D8%AF-%D9%85%DB%8C-%D8%B4%D9%88%D8%AF\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">data from Tavanir<\/span><\/a><span data-contrast=\"auto\">, Iran\u2019s power distribution company, approximately 40 terawatt-hours of electricity\u2014enough to supply 40% of Iranian households\u2014is lost annually due to infrastructure inefficiencies.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Despite Iran\u2019s considerable wealth, widening economic disparities have turned into deep societal fractures over recent years, as regime-affiliated analyst Amir-Mahmoud <\/span><a href=\"https:\/\/asrerasaneh.ir\/%D9%86%DB%8C%D9%85%DB%8C-%D8%A7%D8%B2-%D9%82%D8%AF%D8%B1%D8%AA-%D8%AE%D8%B1%DB%8C%D8%AF-%DA%A9%D9%85%D8%AF%D8%B1%D8%A2%D9%85%D8%AF%D9%87%D8%A7-%D8%A7%D8%B2-%D8%AF%D8%B3%D8%AA-%D8%B1%D9%81\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Harirchi acknowledged<\/span><\/a><span data-contrast=\"auto\">: \u201cClass divides in Iran have turned into fault lines over the years, caused solely by increasing poverty and the worsening economic situation. This situation has emerged despite Iran\u2019s wealth, yet we continue to witness an expansion of poverty.\u201d<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Watch and judge how <a href=\"https:\/\/twitter.com\/hashtag\/Khamenei?src=hash&amp;ref_src=twsrc%5Etfw\">#Khamenei<\/a> who has been squandering <a href=\"https:\/\/twitter.com\/hashtag\/Iran?src=hash&amp;ref_src=twsrc%5Etfw\">#Iran<\/a>&#39;s wealth on global terrorism and regional warmongering has got the nerve to accuse ordinary people of wasting water, bread and electricity. <a href=\"https:\/\/t.co\/YCGqWdVkK7\">pic.twitter.com\/YCGqWdVkK7<\/a><\/p>\n<p>&mdash; NCRI-FAC (@iran_policy) <a href=\"https:\/\/twitter.com\/iran_policy\/status\/1752050478295482670?ref_src=twsrc%5Etfw\">January 29, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">The decision to raise electricity rates for high-consumption households also deepens the socioeconomic divide, with poorer citizens facing heavier energy burdens than ever. <\/span><a href=\"https:\/\/youtu.be\/BVXfkli2mrc\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Saeed Ajorlou<\/span><\/a><span data-contrast=\"auto\">, a state-affiliated analyst, cautioned that such policies risk destabilizing society. \u201cAny sudden decision that creates shockwaves or hyperinflation could halve Pezeshkian\u2019s popularity overnight,\u201d Ajorlou warned, adding that ignoring people\u2019s demands could lead to widespread unrest.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Some state officials fear that, without effective solutions to inflation and basic living costs, these policies could ignite new waves of protests. Iran\u2019s budget proposal, focusing heavily on security spending rather than alleviating economic pressure, highlights the regime\u2019s prioritization of self-preservation over public welfare. With electricity hikes looming, many worry that the government\u2019s moves might provoke another round of protests akin to the 2022 uprisings, where economic hardship and systemic grievances collided in explosive demonstrations across the nation.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Iranian government&rsquo;s recent announcement of electricity price hikes, particularly affecting high-usage households, is fueling public outrage, especially as millions of low-income families already struggle under inflation and economic hardship.&nbsp;&nbsp; [&#8230;]<\/p>\n","protected":false},"author":22,"featured_media":325410,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,4],"tags":[269],"class_list":{"0":"post-325407","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"category-anews","9":"tag-iran-economy"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - 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