Utility rates in Iran are important for those who think they want to enter into Iran’s market. Water, electricity and gas are the main sources of energy in Iran. These energy containers are classified to different levels and the more they are used, the higher their rates.

As an example, if the average monthly usage of water in urban areas (residential) is 26 m^{3}, the cost is calculated as:

Cost: (1290—5)+(1930—5)+(2570—5)+(3220—5)+(4500—5)+(7080—1)=74,630 Rials

Each city in Iran has a discrimination factor. For example, Tehran’s factor is 1.45, Isfahan’s is 1.27, Tabriz’s is 1.30 and Bandar Abbas’s is 1.31.

So the final cost will be the cost of usage multiplied by the discrimination factor. Now if we assume the city is Tehran,

Final Cost: 74,630—1.45=108,213.5 Rials.

Additional point:

The amount of waste water will be calculated based on the amount of water used.

In warm months (Jun, July, August & September), an extra 20% fee will be charged to non-residential water sectors.

Service |
Area |
M^{3} |
Price (IRR) |
Price diff. |
Percentage diff. |

Water Rate (city area) |
Residential |
0<x<=5 | 1290 | – | – |

5<x<=10 | 1930 | 640 | 50% | ||

10<x<=15 | 2570 | 640 | 33% | ||

15<x<=20 | 3220 | 650 | 25% | ||

20<x<=25 | 4500 | 1280 | 40% | ||

25<x<=30 | 7080 | 2580 | 57% | ||

30<x<=35 | 9650 | 2570 | 36% | ||

35<x<=40 | 12870 | 3220 | 33% | ||

40<x<=50 | 25740 | 12870 | 100% | ||

50<x | 51460 | 25720 | 100% | ||

Non-residential |
Industrial | 4800 | – | – | |

Public and State | 6480 | – | – | ||

Educational and Religious | 2400 | – | – | ||

Construction | 9000 | – | – | ||

Commercial | 8310 | – | – | ||

Others | 1200 | – | – | ||

Wastewater disposal cost |
Residential |
0<x<=5 | 300 | – | – |

5<x<=10 | 490 | 190 | 63% | ||

10<x<=15 | 500 | 10 | 2% | ||

15<x<=20 | 690 | 190 | 38% | ||

20<x<=25 | 1170 | 480 | 70% | ||

25<x<=30 | 1820 | 650 | 56% | ||

30<x<=35 | 2130 | 310 | 17% | ||

35<x<=40 | 5190 | 3060 | 144% | ||

40<x<=50 | 12390 | 7200 | 139% | ||

50<x | 18000 | 5610 | 45% | ||

Non-residential |
Industrial | 3862 | – | – | |

Public and State | 3472 | – | – | ||

Educational and Religious | 607 | – | – | ||

Construction | 4320 | – | – | ||

Commercial | 4829 | – | – | ||

Others | 737 | – | – | ||

Water Rate (rural area) |
Residential |
0<x<=5 | 390 | – | – |

5<x<=10 | 580 | 190 | 49% | ||

10<x<=15 | 630 | 50 | 9% | ||

15<x<=20 | 950 | 320 | 51% | ||

20<x<=25 | 1490 | 540 | 57% | ||

25<x<=30 | 1720 | 230 | 15% | ||

30<x<=35 | 2350 | 630 | 37% | ||

35<x<=40 | 3240 | 890 | 38% | ||

40< | 5280 | 2040 | 63% | ||

non-residential |
Industrial | 4800 | – | – | |

Public and State | 6000 | – | – | ||

Educational and Religious | 1800 | – | – | ||

Construction | 9000 | – | – | ||

Commercial | 7800 | – | – | ||

Others | 1200 | – | – |

Service |
Area |
kwh |
Price (IRR) |
Price diff. |
Percentage diff. |

Electricity |
Residential |
0<x<=100 | 409 | ||

100<x<=200 | 477 | 68 | 17% | ||

200<x<=300 | 1023 | 546 | 114% | ||

300<x<=400 | 1841 | 818 | 80% | ||

400<x<=500 | 2114 | 273 | 15% | ||

500<x<=600 | 2660 | 546 | 26% | ||

600<=x | 2933 | 273 | 10% |

Electricity power rates are classed as two main groups, which are residential and non-resdential. Different prices for each usage range areÂ shown in the below tables.

Service |
Area |
Tarrif code |
Power of more than 30 Kwh |
Power of less than 30 Kwh |
||||||

Electricity |
Non-residential |
A | Choice |
Power cost |
off peak |
mid peak |
peak |
off peak |
mid peak |
peak |

1 | 47616 | 253 | 506 | 1012 | 327.5 | 655 | 1310 | |||

2 | 17856 | 290.5 | 581 | 1162 | ||||||

3 | – | 320.5 | 641 | 1282 | ||||||

B | 1 | 26784 | 149 | 298 | 596 | 201.5 | 403 | 806 | ||

2 | 13392 | 179 | 358 | 716 | ||||||

3 | – | 201.5 | 403 | 806 |

A with choices |
1 | Branches with 400 and 230Kw |

2 | Branches with 132, 66 and 63 Kw | |

3 | Branches with medium pressure of 20, 33 and 11 Kw. | |

4 | Branches with low pressure. | |

B with choices |
1 | Railway transportation |

2 | Flour factories and Ice factories |

Natural gas prices in cold months (Oct. to Mar.) and warm months (Mar. to Oct.) differ. Prices increase, as usage increases.

Service |
Area |
M^{3} |
Price (IRR) |
Price diff. |
Percentage diff. |

Natural Gas |
Household (7 Warm Months) |
0<x<=45 | 1080 | – | – |

45<x<=95 | 1310 | 230 | 21% | ||

95<x<=145 | 1650 | 340 | 26% | ||

145<x<=195 | 2110 | 460 | 28% | ||

195<x<=245 | 2570 | 460 | 22% | ||

245<x<=295 | 2800 | 230 | 9% | ||

295<x<=345 | 3150 | 350 | 13% | ||

345<x<=395 | 3490 | 340 | 11% | ||

395<x<=445 | 3720 | 230 | 7% | ||

445<x<=495 | 3950 | 230 | 6% | ||

495<x<=545 | 4180 | 230 | 6% | ||

545<x | 4300 | 120 | 3% | ||

Household (5 Cold Months) |
0<x<=300 | 410 | – | – | |

300<x<=400 | 690 | 280 | 68% | ||

400<x<=500 | 960 | 270 | 39% | ||

500<x<=600 | 1240 | 280 | 29% | ||

600<x<=700 | 1510 | 270 | 22% | ||

700<x<=800 | 2200 | 690 | 46% | ||

800<x<=900 | 2620 | 420 | 19% | ||

900<x<=1000 | 3030 | 410 | 16% | ||

1000<x<=1100 | 3450 | 420 | 14% | ||

1100<x<=1200 | 3860 | 410 | 12% | ||

1200<x<=1300 | 4410 | 550 | 14% | ||

1300<=x | 4830 | 420 | 10% | ||

Non-Household(7 Warm Months) |
Petrochemical |
2650 | – | – | |

Steel |
1320 | – | – | ||

Agriculture and industries |
1150 | – | – | ||

other industries |
1000 | – | – | ||

General(commercial) |
1500 | – | – | ||

Non-Household(5 Cold Months) |
Petrochemical |
2650 | – | – | |

Steel |
1320 | – | – | ||

Agriculture and industries |
690 | – | – | ||

other industries |
1000 | – | – | ||

General(commercial) |
1500 | – | – |

## 5 comments

dear Sir,salam.

i have plan to make investment in Manufacturing in Iran. pls adv as follow;

1.city and rural. which area is city and which is rural i.e defination of city and rural?. Is Shahid Rajaee SEZ consider city or rural.

2.i need almost 30,000 m3 of water per months. should i refer to the non-residential and industrial category of Rials4800/m3 ?.

3.I am going to need a maximum of 5500 KWatt to be connected to my new plant and will need a 22KV supply lines( or 33KV also ok).pls adv which particular electricity tarif code for me to use, is it A1, A2 , A3 or A4. or B1, B2 if applicable.

4.Natural gas.. can i refer to non-household/ agriculture and industries OR industries category for the rates that i will be charged once i installed my manufacturing plant.

appreciate your immediate response.

rgds/patah.

Dear Sir/Madam

I need to know how to invest via bank in Iran. I heard that Iran’s Islamic banks give a profit sharing of up to 20 percent a year, is it true? If true, coould you advise me. Thank you.

Regards

Zaenal

Dear Zaenal,

Thanks for your email. At the moment the official interest on deposit at banks are 18% however Islamic Treasury bill and Sukuk`s return is around 20 to 24%. you need to open a bank account in Iran and if you want to trade T-bills and other securities you need to open a trading account in a brokerage company. I recommend you Behgozin Brokerage Company which is one the biggest brokerage companies in Iran with full brokerage services. should you have any inquiry please contact Mr. Rasa Ordoubadi, Head of International Affairs at Behgozin. His email address is: r.ordoubadi@behgozinbroker.com

Hello

We would like to invest in green renewable energy projects in Iran.

Minimum 3 MW to 2500 MW Power plant.

Let me know the following:

What is the current rate as in Power Purchasing Agreement?

Any special benefits which government gives for green energy projects?

We will fund the entire process from leasing the land up to setting up the plant.

Look forward to hear from you.

Regards

Pajet Gomez

Dear Pajet, Thanks for your message. The current rate is 12,000 Rial per KW/H and the rate is based on oil price and condition of demand and supply. The government will provide the required land to run the project however the ownership is not yours. Please do not hesitate to contact Mr. Rasa Ordoubadi, Head of International Affairs at Behgozin if you have any further inquiry. His email address is: r.ordoubadi@behgozinbroker.com