[80871] The energy and cost of living crisis in Iran: Reports on government policy and political tension

The energy struggle and economic pressure on the public in Iran

In a series of reports published by SNN.ir|Student News Agency (a news agency affiliated with the conservative student movement in Iran), Karimi, head of the energy department at the Planning and Budget Organization, detailed the government's transition to an "Energy Contractors" model. The model is intended to replace direct government intervention with cooperation with private companies that will promote efficiency among consumers through incentives and equipment replacement. According to Karimi, in this model, the resulting savings will economically incentivize the companies, and they will be able to sell surplus energy to industry.

At the same time, the organization's official emphasized that achieving stability in the power grid depends on the level of demand in the summer and temperatures, while noting that "the country's solar energy capacity has almost doubled in the last year." In addition, Karimi called on the public to take part in the "war on energy," claiming that reducing consumption by 20 to 30 percent by households is a critical strategic step for strengthening the country's economy.

In the socio-political arena, sharp criticism was leveled by Ali Jafari-Azar, Deputy Chairman of the Social Committee in the Iranian Parliament. Jafari-Azar claimed that the government retreated from its promise to update food stamp amounts in June, a move that was supposed to compensate for price hikes. He emphasized that "it is the government's duty to protect the dining table and the food security of the citizens."

In addition, Jafari-Azar sharply attacked the status quo in the employment sector, claiming that there are contracting companies generating "huge profits" at the expense of workers' wages. According to him, the opposition of influential elements to the elimination of mediation by manpower companies raises suspicions of corruption, especially when a report by the Court of Accounts determined that the move does not require an additional government budget.

Meanwhile, the Iranian news agency IRNA published a review of the energy crisis in Europe. According to the report, although the European Union managed to reduce energy import costs from 604 billion euros in 2022 to 427 billion euros in 2024, it continued to suffer from "social dissatisfaction" due to the policies burdensome on households and industry.