10% Tax Break For Power Companies in IRENEX

Industrial units with electricity consumption of above 5 megawatts will be able to buy electricity directly from power plants, Ali Hosseini said.

“This will ensure mutual benefit for both sides as power producers get a 10% tax break and buyers get electricity cheaper from IRENEX”, IRIB news agency quoted Hosseini as saying.

This price difference is a key factor for energy-intensive industries, according to Financial Tribune.

Hosseini said all private-owned power plants as well as a large number of state-owned plants listed on the IRENEX can sell electricity via the energy market.

IRENEX is a market for trading energy futures and commodities, including oil, gas, electricity, petrochemicals and oil byproducts. It was launched in 2013 as the fourth exchange and operates under the supervision and regulations of the Securities and Exchange Organization of Iran.

More than 100 companies, including petrochemical plants, refineries and power plants, offer their goods and services at the exchange, the IRENEX website says.

Since inception the market has handled 58 billion kilowatt-hours of electricity worth 210 trillion rials ($1.8 billion), according to Valiolla Aei’en Negini, head of the operation department of IRENEX. 

“So far less than 10 power plants are active in the energy market,” he said, hoping for a more flourishing market in the near future due to closer interaction between the energy market and Ministry of Energy. 

Pointing to rules, he said only power plants with a capacity of above 5MW can seek customers via IRENEX. 

 However, there are plans to also allow the presence of lower capacity plants in the energy market. 

Power is traded for 450 rials per kwh in the IRENEX, Negini said, adding that prices would be more competitive if more power plants compete on the IRENEX platform. 

“It is more beneficial for companies to enter IRENEX,” he was quoted as saying.