Baghdad: The Eco-Iraq Observatory announced that approximately 55% of the electricity produced in Iraq is lost due to illegal and unauthorized connections to the grid. To address this issue, the observatory suggests the government should consider gradual privatization of the electricity sector to enhance production and distribution efficiency, reduce waste, and alleviate the financial burden on citizens who are currently paying for both government-supplied electricity and private generators.

According to National Iraqi News Agency, the Eco-Iraq Observatory highlighted that Iraq’s current electricity production stands at around 26,000 megawatts, while the country’s peak summer demand reaches approximately 60,000 megawatts. This discrepancy leads to significant power shortages and inefficiencies.

The observatory emphasized that the loss of about 55% of the generated power during transmission and distribution is due to illegal connections, unauthorized connections, and the absence of metering systems, which exacerbates the power deficit faced by consumers. It was noted that the Ministry of Electricity drains substantial financial resources, with citizens shouldering the cost of both government-supplied electricity and private generators. Monthly spending on the electricity sector exceeds 200 billion dinars, raising concerns about the efficiency of spending and the effectiveness of the current production, transmission, distribution, and billing systems.

The Eco-Iraq Observatory urges the government to implement a systematic approach to privatize the electricity sector gradually. This move aims to improve production and distribution efficiency, cut down on waste, and eliminate the dual system that currently forces citizens to pay for both government electricity and private generators.