Energy Minister Sets 96,225 Rial Fuel Rate for Free-Board Power Plants and Passes Costs Into Electricity Bills

Energy Minister Abbas Aliabadi has issued new power-plant fuel pricing rules that take effect on 1 Aban 1405 (October 23, 2026), Mehr News reported. Besides the 12,830 rials per cubic metre rate for plants in the wholesale market and the exchange's ordinary board, already disclosed in Codal filings, plants selling on the exchange's free board face a rate of 96,225 rials per cubic metre; both rates include VAT and duties.

Tavanir must apply the wholesale and ordinary-board rate in end-consumer bills, with buyers on the green board and free board exempt. A plant that does not pay Tavanir for its fuel will have its free-board sales capacity cut by the grid operator until it settles, and the grid operator must revise the wholesale energy price cap to match the new fuel rate. Tavanir has one month to launch an online fuel-payment mechanism with the energy exchange. Steam units at combined-cycle plants and efficiency upgrades that burn no extra fuel are exempt under conditions set in the directive.