Can People Plan Their Lives Without Knowing the Price of Electricity?

The KRG has reportedly planned to “subsidise” the new 24-hour electricity service by offering a 50% discount in the first month and a 25% discount in the second, ostensibly to help residents adjust to the new pricing scheme.

This appears to be an attempt to manage public backlash over the sharp rise in electricity costs by selectively applying these discounts in neighborhoods where the new service is being rolled out. The idea seems to be that by the time residents in older neighborhoods begin to complain about their high bills, those benefiting from the 24-hour service can respond that the pricing is reasonable. However, the discount only lasts for a short period, and critically, the actual long-term price of electricity has not yet been announced. The KRG claims a decision on pricing is forthcoming.

Providing uninterrupted electricity is undoubtedly a positive step. Even with the current concerns, the potential benefits—such as improved air quality and environmental gains—are substantial. But any new public project must weigh its costs against its benefits. The KRG says it is subsidising prices, but it has not explained how. There is no information on how much this is costing or where the funding is coming from, especially given that the region does not currently have a functioning budget.

Moreover, electricity pricing should be evaluated relative to local income levels, not in absolute terms or by comparison with other countries. The price must be high enough to prevent overconsumption, but not so high that it disrupts daily life. Access to affordable electricity is tied directly to economic development and public well-being.

The initiative, officially named the "Light Project," has ironically been dubbed the "Darkness Project" by the public, due to the steep price hikes. In many areas, residents have become so afraid of high bills that they avoid turning on lights altogether, plunging entire neighborhoods into darkness—as seen in the image below from a neighborhood in Erbil. Ultimately, the goal of such projects should be to benefit the public in a balanced and transparent way.

While the KRG has hinted at revising the price structure following public outcry, there remains a complete lack of transparency. People still do not know what the actual rate for the 24-hour service is or what bills to expect—making it impossible to budget or plan household expenses.

While the principle of 24-hour electricity is welcome, there are still major questions to be answered. For example, how can something as fundamental as the price of electricity remain unknown? How can people plan their lives in such uncertainty?

We will publish a more data-driven and factual report once clearer details on pricing and implementation become available.