Towards Ending Subsidies: Price Hikes on Industrial and Domestic Electricity in Syria

The Syrian government has announced that it will gradually raise the price of electricity in Syria in all sectors, including domestic and industrial consumption, al-Hal reports.
Towards Ending Subsidies: Price Hikes on Industrial and Domestic Electricity in Syria

The Syrian government has approved a plan to gradually raise the price of electricity in all sectors in Syria, including both domestic and industrial consumption.

According to a government memorandum, the price hike aims to reduce financial losses by 50 percent for electricity companies, which have been caused by electricity subsidies. That is, electricity prices have risen by 50 percent compared with previous levels.

Raising prices also aims to inject the liquidity required for the continued operation of the electricity network. The price rises will also motivate users to rely on renewable energy sources to meet part of their consumption needs, as many other countries already do, according to the memorandum published by al-Watan newspaper.

For agricultural users and charities, the rate will be adjusted to facilitate a 20 percent reduction in financial losses.

Talk increased in recent months about increasing electricity prices and withdrawing electricity subsidies in Syria. This policy has been advanced on the pretext that it will lead to more availability and accelerated reliance on alternative energy sources.

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Wael al-Shihawi, former director of the Syrian Investment Authority, recently suggested that “traditional electricity prices should be liberalized and the amounts spent on supporting the electricity sector should be diverted to finance installing an alternative energy system in each household, free of charge.”

The Syrian regime’s Ministry of Electricity has ignored the paralysis of the electricity supply and the lack of coverage for most Syrians. Instead, it has discussed the “alternative energy” projects underway, in an attempt to “numb” Syrians through the usually fictitious “hope.”

Most Syrians have no electricity for more than 20 hours a day, while government officials come out every now and then to make promises of imminent improvements. However, this has not yet happened. Instead, living conditions have declined even further for the Syrian people, who are already mired in severe economic and service availability crises.

This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.

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