The change to subsidised electricity consumption plan
During the summer time electricity consumption in Iran reaches its pick. Explanation is simple: it is hot and use of air-conditioning is very common, particularly between 12 p.m. to 4 p.m.
To control the consumption and avoid shortages, Tavanir, Iran’s Electric Power Generating Organisation, has a new offer for farmers; those who are willing to go off the network during the pick hours, will not pay their electric consumption for the rest of the day.
Tavanir believes that lots of agricultural electricity consumption, such as filling water reservoirs, can be done over night when the load is at its minimum.
We assume that Tavanir has calculated the subsidy is supposed to pay for those farmers joining the plan.
Export and Currency Exchange Rate
The goal is to increase export value for the current fiscal year by $10 billion. The question is at which exchange rate is it going to be calculated. Central Bank of Iran has promised to unify the two exchange rates by March 2017.
It is clear that the higher rate is more appealing for the Iranian exporter. But what happens if the unified exchange rate will be less than the current market rate (which sounds very improbable but not impossible).
Export Guarantee Fund of Iran has announced its readiness to hedge the exporters’ currency risk. EGFI will make future contracts for 1, 3 and 6 months. However, it does not hedge fluctuations less than 3%.
Read More about Exchange Rates is Iran
We throw motorbikes away!
Tehran Chief of Police gives a report on the number of motorbike offenders (an absolutely common phenomenon in Iran).
Over the last four months, 50.000 motorcycles have been grounded at the Police Parking and 800.000 motorcyclists have been given fines. These are 15% more than the same period last year.
Tehran CPO says that in many cases the fine a cyclist has to pay to get his bikes back is higher than the price of a new vehicle. That is why they never come back to release their bikes. He complains about the low quality of motorbikes which causes them to be cheap. Then the owner cannot forget it.
