The Kurdistan Regional Government (KRG) has formally introduced a new electricity pricing scheme under the National Electricity Project (NEP), aiming to reduce the financial burden on the majority of residents. The Ministry of Electricity announced on Wednesday, May 14, 2025, that the Council of Ministers has unanimously endorsed both the “Lighting Project” and the revised electricity tariffs.
The new pricing structure is designed to ensure that approximately 80% of citizens will experience lower energy costs compared to what they previously paid for generator and national electricity consumption. In support of the initiative, the Council of Ministers has allocated up to $200 million in supplementary funding, including seasonal subsidies, to assist citizens further.
The household electricity pricing will follow a tiered system:
- Level 1 (0–400 kWh): 72 IQD per kWh
- Level 2 (401–800 kWh): 108 IQD per kWh
- Level 3 (801–1200 kWh): 175 IQD per kWh
- Level 4 (1201–1600 kWh): 265 IQD per kWh
- Level 5 (Above 1600 kWh): 350 IQD per kWh
According to government data, 64% of citizens fall within the first two tiers, indicating substantial benefits for a majority of households.
Additionally, specific electricity rates have been established for non-residential sectors under the project:
- Commercial: 185 IQD per kWh
- Agricultural: 60 IQD per kWh
- Industrial: 160 IQD per kWh
- Large Industrial: 125 IQD per kWh
- Miri (Government Properties): 160 IQD per kWh
This initiative represents a significant move toward equitable and sustainable energy access, aligning with the region’s broader developmental goals.