Electricians install smart meters and connect homes to the national grid as part of the Runaki 24-hour electricity project in Erbil.
KRG Sets New Pricing for 24-Hour Electricity as Subsidies Phase Out
ERBIL — The Kurdistan Regional Government (KRG) has introduced a new pricing system for its 24-hour national electricity project, Runaki, marking a transition from heavily subsidized, limited-hour power to a continuous supply model.
The Runaki project is an initiative launched by the Kurdistan Regional Government on October 17, 2024, with the goal of providing 24-hour national grid electricity across the Kurdistan Region by the end of 2026. So far, the project has delivered 24-hour electricity to 43 neighborhoods in Erbil, Sulaymaniyah and Duhok, reaching more than 100,000 homes and businesses.
Under the new policy, electricity will be billed on a progressive scale based on monthly household consumption. The first 400 kilowatt-hours (kWh) will be charged at 72 IQD per kWh (approximately $0.058). Usage between 400 and 800 kWh will cost 108 IQD per kWh ($0.087), while consumption between 800 and 1,200 kWh will be billed at 175 IQD per kWh ($0.141). For usage between 1,200 and 1,600 kWh, the rate rises to 265 IQD per kWh ($0.214), and any consumption from 1,600 to 2,000 kWh will be charged at 350 IQD per kWh ($0.282).
For example, a typical household consuming 670 kWh per month will pay 57,960 IQD—approximately $46.74. Previously, most residents paid just 18 IQD per kWh ($0.015) for limited access, often lasting only a few hours a day.
The KRG has announced that it will partially subsidize electricity costs during the first three months of implementation—covering 50%, 25%, or 15% of the bill based on usage levels. Government spokesperson Peshawa Hawramani said the ultimate goal is to extend 24-hour power to all governorate centers by the end of 2025 and eventually reach outlying districts and subdistricts. He also confirmed that a high-level oversight committee, chaired by Prime Minister Masrour Barzani, will monitor the rollout and assess affordability and access.
Electricity shortages have long affected the Kurdistan Region, where state-supplied power can fall to as little as 8 to 10 hours per day during peak summer and winter months. To compensate, neighborhoods rely on local diesel-powered generators, managed independently and usually installed on street corners. Residents subscribe to specific amperage and pay monthly fees, which fluctuate based on demand.
The project draws on existing power sources, including natural gas from fields such as Khor Mor and hydroelectric capacity from dams like Dukan and Darbandikhan. Despite generating roughly 3,500 megawatts, regional demand exceeds 7,500 megawatts—a gap that becomes especially pronounced during peak winter and summer periods.
While many residents welcome the shift to consistent power, concerns have surfaced over affordability. Kurdish lawmaker Ali Hama Salih, a frequent critic of energy policy, told 964media that the new rates are burdensome. “For a household using 10 amperes of continuous electricity, the monthly bill could reach 248,000 IQD—about $200,” he said. “That’s unaffordable for many families and needs to be reconsidered.”