Subsidy squeeze: generator owners in Iraq feel the heat
Shafaq News/ Owners of private generators that provide electricity to Iraqi governorates are complaining about the high prices of "subsidized" mazut fuel oil and the long hours of electricity cuts, which increase the pressure on their generators. Local governments have confirmed monitoring dozens of generator owners who violate regulations, including ampere pricing, reducing voltage, and forcing citizens to pay for the "golden line"—a high-priority, stable, and reliable electricity supply line.
Iraq has faced significant electricity shortages for many years due to outdated and damaged infrastructure, fuel shortages, and investment shortfalls. This situation has severely impacted the daily lives of citizens and the development of the country. Additionally, high temperatures exceeding 50 degrees Celsius have exacerbated the citizens' suffering in various Iraqi governorates.
"Most citizens, especially those with limited income, subscribe to the regular line, while the well-off subscribe to the gold line," said Iraqi citizen Em Mohammed. "The price of the regular line was 6,000 dinars ($4.58) before the heat wave, but it has now reached 9,000 dinars ($6.87), and the service suppliers cut the power for one hour every four hours."
The President of the Najaf Governorate's Generator Owners Association noted, "When the national electricity supply is cut for 12 hours continuously, no one rises against the electricity department. But when the generator's supply is cut for 5 minutes, the citizens rush the generator owner in anger and start a quarrel. However, the origin of the crisis is the Ministry of Electricity."
Al-Ghazali told Shafaq News that the Ministry of Electricity has "failed" to deliver on its promises of a stable power supply during designated hours. Instead, citizens face repeated power cuts and breakdowns throughout the summer. Additionally, the Ministry has not fulfilled its commitments to private generator owners, who are then left solely responsible for providing electricity to residents.
He continued, "As for the Ministry of Oil, the price of one liter of mazut is 280 dinars, including transportation costs, and the government considers it a 'subsidized' price. However, the subsidized price was during the period when former Prime Minister Nuri al-Maliki was in power, and generator owners were then provided with free mazut for four years," indicating that "the price of an ampere for the regular line is 9,000 dinars and for the golden one 15,000 dinars ($11.46); the prices for next month have not been issued yet. Free fuel oil will reduce the price of the ampere."
Najaf governorate spokesman Ahmed al-Fatlawi announced the detection of several violations by the owners of private generators this June. These violations include increasing the official price set by the local government and the generator department, reducing the voltage of the generator, and pushing residents into subscribing to the "golden line" service.
Al-Fatlawi told the agency that "the generator department in the governorate has fined dozens of generator owners who violated the regulations set by the local government," urging citizens to report any violations to the provincial citizen affairs department.
