Saeid Pakseresht regarding incentives for operating energy companies stated: The responsibility of operating companies (energy operators) that involve private sector participation is to manage energy consumption for various customers.

He went on to say that this step, which follows a long history in global experience, acts as an intermediary between the main energy supplier and consumer. “Operating companies create energy consumption optimization by implementing corrective measures between consumers (residential consumers), thereby laying the groundwork for reducing it.”

With their consumption of natural gas, the operator companies receive verification of savings which is tradable on the energy exchange, the official noted. For example, the price of one cubic meter of gas is 200 or 300 tomans, but this amount is valued at 18,000 tomans in the energy exchange market. This difference in price will be for to the company and the company benefits from it.

Transferring saved natural gas to industrial production sectors

Pakseresht also said  that the activities of operator companies in gas consumption are profit-making for the country. He explained: “Natural gas consumed in people’s homes is reduced through this process, as the saved energy is sent to productive industrial sectors, benefiting the country through the activity of industrial sector. The consumer also benefits from having access to new equipment, reducing their consumption as well as lowering costs – which is also a gain. Ultimately, it's a win-win situation for everyone.

The official spoke about the implementation of the pilot plan nationwide, stating that 27 operator companies are ready to begin the program in all provinces of the country. However, it's important to note that there are two types of contracts between the NIGC and the operator companies. The type 2, known as ‘Customers Consumption Management,’ is a specific contract. The first type – Contract Type 1 – is broader and goes beyond the scope of the first, allowing the operator companies to purchase gas in bulk.”

He continued by mentioning the introduction of seven provinces for the pilot implementation of Contract Type One between operator companies and the NIGC. “Despite progress, Contract Type 1 requires more infrastructure development; however, Contract Type 2 is entering the market faster because the infrastructure is ready, the pilot provinces are defined, and the process is progressing.”

The official said that operator companies, under Contract Type One, take delivery of natural gas at a specific point and manage its distribution within a large area or complex, then sell it in smaller quantities to clients.

He concluded that the amount of saved gas will be handed to operator company and is tradable on the energy exchange market. In this section, verification of savings isn’t a primary factor; rather, buying and selling gas are the determining criteria.