TEHRAN- Ali Mahmoudian, an entrepreneur and the head of the National Union of Alternative Fuels and Related Services, drawing from his experience in the energy sector, discussed the solutions for addressing electricity wastage and smuggling in the country:

One effective measure in this regard is the installation and expansion of smart meters. Through smart monitoring, violations can be detected in real time, and unauthorized consumption can be reduced. This method has been used for several years in many countries, as the cost of electricity in these countries is significantly high.

He added: Another measure is the reform of pricing systems and the gradual increase of electricity prices based on consumption patterns, especially for high consumers and unnecessary usage, which can help eliminate the motivations for smuggling after smart monitoring is implemented.

Mahmoudian continued: Another issue to address is combating illegal cryptocurrency mining. We need to identify areas with peak electricity consumption and take action, as these areas are often used for digital currency mining. He explained: Additionally, legal conditions and facilities for licensed miners should be provided so they stay away from illegal activities.

Because the regulations in this sector are strict, these activities have effectively become part of the underground economy, with little information available about them, and they harm the country’s economy. In fact, they take advantage of the structural weakness, where the electricity grid is not smart, and engage in illegal activities.

The head of the National Union of Alternative Fuels and Related Services further suggested strengthening infrastructure in border areas and utilizing technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI) for network monitoring.

These technologies can identify which sections of the grid are drawing more load and provide quick alerts for evaluation.

Mahmoudian said: We need to establish legal agreements with neighboring countries so that electricity is exported at international rates, and the revenues can be used to strengthen domestic infrastructure.

According to Mahmoudian, electricity smuggling is a multifaceted challenge that, in addition to harming the national economy, threatens the sustainability of the distribution network and the quality of services.

Clearly, a solution with the cooperation of all relevant agencies and the involvement of the public could turn this issue into an opportunity to strengthen energy infrastructure, a move that requires transparency from the government to the people.

He stated: If changes are to happen in this area, the public must be informed in advance, made aware, and the savings should be reflected in people’s accounts so that trust-building can take place through this process.

The head of the National Union of Alternative Fuels and Related Services concluded by emphasizing: Involving the public increases the sense of solidarity. The government must fulfill its commitments to attract the private sector and the public to turn the threat into an opportunity. This requires the government’s foresight.