The Kurdistan Regional Government (KRG) has formally introduced a new electricity pricing structure under its 24-hour power supply initiative, marking a significant shift in the region’s public service framework. The new system introduces five consumption tiers, with rates rising steeply as usage increases—an outcome that is likely during the region’s sweltering summers and harsh winters.

Under the revised structure, electricity is priced at 72 Iraqi dinars per kilowatt-hour (kWh) for the first 400 kWh. The rate then climbs to 108 dinars for usage between 401 and 800 kWh, 175 dinars for 801 to 1,200 kWh, 265 dinars for 1,201 to 1,600 kWh, and 350 dinars for any consumption beyond 1,600 kWh. These new tariffs apply to households enrolled in the 24-hour public electricity system and represent a clear departure from the region’s longstanding subsidized pricing model.

The rollout has reignited widespread concern over affordability. According to the Kurdistan Region Statistics Office, the average monthly personal income currently stands at 248,000 dinars—approximately 174 US dollars based on the mid-May exchange rate. For households consuming 800 kWh per month, a level typical for running a single air conditioner in summer, the new rate results in a bill of 72,000 dinars, or 29 percent of monthly income. At 1,200 kWh, the cost rises to 142,000 dinars—more than half the average salary. Households consuming 1,600 kWh, which is not uncommon among larger families operating multiple air conditioners, now face bills that consume their entire income.

These concerns first surfaced during the early rollout of the Ronaki Project—Kurdistan’s 24-hour electricity initiative launched in mid-2024 in select neighborhoods of Erbil. Named after the Kurdish word for “light,” the Ronaki Project aims to provide uninterrupted public electricity in a region long plagued by limited grid access and widespread reliance on diesel generators. Despite its promise, early implementation revealed a troubling disconnect between policy design and household income levels.

During the pilot phase, participating households were charged around 150 dinars per kWh—more than a 750 percent increase over the 18 dinars paid in areas still operating under the traditional system. While those areas continued to receive a fluctuating supply—sometimes fewer than 10 hours, other times exceeding 15 hours per day depending on the season and location—they still relied heavily on costly private generators to bridge the gap. Despite supplementing with costly private generators, many early adopters were surprised by significantly higher bills. For comparison, electricity rates in the rest of Iraq remain at 10 dinars per kWh, despite ongoing grid outages.

In practice, the financial strain has been significant. Many households enrolled in the Ronaki Project have reported monthly bills exceeding 250,000 dinars, with some reaching over 350,000 dinars—costs that far outstrip average income levels. One Erbil resident, Asmar Sharif, described how her family’s bill jumped from 47,000 to over 184,000 dinars within a single month. At one point, she said, the charge reached 305,000 dinars. “We said we couldn’t pay,” she recounted. “The first time, they left without saying anything. The second time, they came back and threatened to cut our power. Three of us had to pool money just to keep the lights on.”

The steep prices have even altered daily behavior. In some neighborhoods, residents now avoid turning on lights altogether, fearing unaffordable bills. As a result, entire streets in Erbil have fallen into darkness at night. While the project is officially named the Ronaki or “Light Project,” many citizens now derisively call it the “Darkness Project”—a reflection of rising anxiety and fading trust.

Experts stress that electricity pricing should not be judged in isolation or compared to global averages, but rather assessed in relation to local income levels. A sound pricing model must be high enough to discourage wasteful use, but not so high that it destabilizes daily life. Affordable electricity is not just a utility—it is a pillar of economic development and public well-being.

Despite public frustration, the 24-hour electricity plan does offer clear benefits. Kurdistan is currently home to an estimated 6,500 neighborhood diesel generators, which have for years polluted urban air and contributed to widespread health and environmental concerns. Replacing these generators with consistent public electricity offers a chance to substantially improve air quality, reduce emissions, and modernize the region’s energy infrastructure. For many, that environmental payoff is long overdue.

Nevertheless, regional comparisons underscore how severe the affordability gap is in Kurdistan. In Turkey, where average net monthly income is around 850 US dollars, consuming 800 kWh accounts for just six percent of household earnings. In Jordan, with an average income of about 975 dollars, the same usage consumes roughly seven percent. In Saudi Arabia, where electricity costs around 0.053 dollars per kWh and monthly incomes exceed 2,800 dollars, electricity bills account for less than two percent of income. In the European Union, while electricity prices are higher in absolute terms, higher incomes ensure that utility costs remain manageable.

In Kurdistan, by contrast, the problem is not only the price of electricity but the broader structural context. Most households include more than four members, yet often only one person is formally employed. Labour force participation remains low, especially among women, while unemployment is high among the region’s predominantly young population—two-thirds of whom are under the age of thirty. As a result, many families depend on a single public-sector salary to support multiple dependents. In this context, electricity bills consuming half—or all—of that salary leave little room for basic living expenses.

Although the KRG initially projected a two-year timeline for rolling out the 24-hour electricity program region-wide, recent developments suggest implementation is accelerating faster than initially planned. However, without substantial policy adjustments, the program risks exacerbating socioeconomic disparities.

As the program scales up, the conversation is beginning to shift from infrastructure delivery to long-term affordability and sustainability. Critics argue that without reforms, the Ronaki Project risks entrenching inequality—offering uninterrupted power, but at a price that many cannot afford.

In response, some policymakers and opposition members, including Kurdistan MP Omar Gulpi, have proposed alternative approaches to address these structural challenges. MP Gulpi’s plan maintains the goal of 24-hour power supply but grounds it in principles of economic equity and public accountability. The proposal includes a tiered household pricing model starting at just 18 dinars per kWh, full subsidies for the first 500 kWh for 127,000 families below the poverty line, and a unique mechanism allowing these families to sell unused electricity back to the government. It also calls for restructured industrial rates, renewable energy incentives, interest-free loans, and administrative reforms, including different day-night pricing and prioritizing domestic needs over exports.

The Kurdistan Islamic Union faction in Parliament has also voiced sharp criticism of the current pricing model. The group claims that the actual production cost of electricity—from generation to distribution—is approximately 72 dinars per kWh, meaning that all higher pricing tiers represent substantial profit margins. According to their statement, these profits are funneled to a mysterious company allegedly linked to senior officials, with indirect reference to the KRG Prime Minister himself. The faction argued that any legitimate pricing policy must be anchored in the true cost of electricity production and the income levels of the population, not driven by opaque commercial interests.

The Ronaki Project marks a major turning point in Kurdistan’s development. But without reforms that match the public’s economic reality, a project launched in the name of light risks becoming a symbol of inequality and mistrust. As one observer noted, without affordability, transparency, and trust, even a project called “Light” may cast long shadows.

Editor’s Note: This report was updated on 15 May 2025 at 20:50 Erbil time to include the Kurdistan Islamic Union’s position on the electricity pricing policy.