Saeed Pakseresht, the integrated planning manager of the National Iranian Gas Company, announced at a specialized meeting on natural gas consumption management held on September 22, that household gas consumption has decreased by 5.8% due to the reform of the tariff system. This new system is designed so that consumers who exceed the established pattern will pay more.
Details of the New Tariff System
Pakseresht pointed out that the tiered gas tariff model is designed in such a way that at higher consumption levels, the rates become closer to export prices. He added: These changes actually mean the establishment of a new pricing system that moves towards greater equity in consumption. Studies conducted on the performance of this system last winter show that in the cold months of the year, actual consumption in some cities was less than the predicted amount based on temperature.
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Effectiveness of Tariff Reforms
The integrated planning manager of the National Iranian Gas Company explained that one cannot solely rely on changes in consumption, as temperature also affects gas consumption. Using consumption data from the past four years and considering the temperature index, a model was designed to relate ambient temperature to consumption levels to calculate expected consumption under similar conditions and then extract the independent effect of the tariff system. Estimates show that the tariff system has overall managed to reduce household gas consumption.
Pakseresht also noted that the goal of this system is not merely to increase consumption costs but to create an incentive for reforming consumption patterns and guiding subscribers towards conventional consumption. The experience of implementing this system last year shows that pricing policies, if designed and executed precisely, can influence subscriber behavior.
Results and Future Implications
In conclusion, Pakseresht emphasized the necessity of using the results of these studies in future policymaking and said: A thorough examination of consumption data and the differentiation of the effects of various factors can serve as a basis for more effective decision-making for gas consumption management in upcoming winters. This is while, given climate changes and increasing energy demand, the need for optimal and efficient management of energy resources is felt more than ever.
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