electricity restructuring

The Islamic Republican of Iran is looking forward to restructure and privatize its electricity industry with an aim to improve its performance and efficiency and to make the sector more attractive for potential independent investors. The new interpretation facilitates the next legal actions, which include the allowance for private investment in the new power plants, the restructuring of Iran's power generation and transmission and distribution management company (Tavanir) as a specialized holding company to facilitate the industry restructuring, and the legal allowance for privatizing the power plants up to 10% of installed capacity each year. The restructuring has resulted in the vertical integrated breakdown to four separate parts and the separation of generation, transmission, distribution, and retail trading of electricity from each other. Restructuring was also done to solve the problem of the unique ownership, which is present in almost all of the industry sections.