ERBIL, Kurdistan Region--The Kurdistan Region’s Ministry of Electricity has denied they are going to hand the ministry over to the private sector, but confirmed that they will not shy away from plans to bring the private sector into some of their services.
“We never made the decision to sell the Ministry of Electricity to the private sector,” the ministry’s spokesperson Muhammad Amin Hawramani told Rudaw. “We are planning for the participation of the private sector in the affairs of the ministry. It is not the case that we will hand down the ministry to the private sector.”
The ministry announced in August it is planning to partly privatize its fragile electricity sector following rapid population growth and overuse of electric power in urban areas.
The board of investors in Kurdistan has called on the KRG to fully privatize the ministry of electricity and allow people to own shares, which the board has said could effectively solve the shortage in power supply with 18 to 20 hours daily.
Hawramani confirmed that even if they incorporate the private sector into their services, the government will remain in control of fixing the prices, “then the government will decrease its subsidy for the prices which currently stands at 70%”.
He also said the objective behind the privatization process is only institutionalization and nothing else.
Soran Omar, a member of parliament from the Islamic Komal Party and a member of the finance committee in the Kurdistan Regional parliament, said for now his faction fully opposes involving the private sector in the affairs of the ministry.
Omar instead demanded the ministry use natural gas in place of diesel at its power plants. “This will bring down the current annual costs of $3.5 billion to only $500 million,” he told Rudaw. He explained that if this is done, when the private sector takes part in delivering services, the electricity prices will drop.
“We never made the decision to sell the Ministry of Electricity to the private sector,” the ministry’s spokesperson Muhammad Amin Hawramani told Rudaw. “We are planning for the participation of the private sector in the affairs of the ministry. It is not the case that we will hand down the ministry to the private sector.”
The ministry announced in August it is planning to partly privatize its fragile electricity sector following rapid population growth and overuse of electric power in urban areas.
The board of investors in Kurdistan has called on the KRG to fully privatize the ministry of electricity and allow people to own shares, which the board has said could effectively solve the shortage in power supply with 18 to 20 hours daily.
Hawramani confirmed that even if they incorporate the private sector into their services, the government will remain in control of fixing the prices, “then the government will decrease its subsidy for the prices which currently stands at 70%”.
He also said the objective behind the privatization process is only institutionalization and nothing else.
Soran Omar, a member of parliament from the Islamic Komal Party and a member of the finance committee in the Kurdistan Regional parliament, said for now his faction fully opposes involving the private sector in the affairs of the ministry.
Omar instead demanded the ministry use natural gas in place of diesel at its power plants. “This will bring down the current annual costs of $3.5 billion to only $500 million,” he told Rudaw. He explained that if this is done, when the private sector takes part in delivering services, the electricity prices will drop.
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