The “Energy Operator Companies” initiative has been developed as a platform to connect the public and private sectors in managing energy consumption within NIGC.
Based on successful international experiences, the plan aims to reduce unproductive gas use and redirect energy toward productive industrial sectors by leveraging the capabilities of specialized private firms. Under this model, private companies that carry out energy efficiency projects receive energy-saving certificates in proportion to the verified amount of gas saved. These certificates can be traded on the Iran Energy Exchange, creating a direct economic incentive for lowering consumption and improving efficiency.
According to Saeid Pak-Seresht, director of integrated planning at NIGC, the company maintains strict oversight of all energy operator projects to safeguard consumer rights and ensure contractual fairness. “This is a win-win-win model,” he said. “Operator companies benefit from the value of the savings achieved, consumers gain from modernized equipment and reduced costs, and the government profits from curbing wasteful use and channeling energy toward productive industries.” He added that every unit of saved energy will be redirected to sectors that create the highest added value for the national economy.
Below is an excerpt from the interview conducted by Shana with Pak-Seresht.
How did the idea of operator companies emerge?
The concept of energy operator companies was designed to encourage private sector participation within NIGC’s operational chain. The main objectives were to optimize energy consumption and improve efficiency. International experience shows that intermediary companies can help reduce nonproductive energy use, transfer energy to industrial sectors, and establish economic incentives for all stakeholders.
Through implementation of consumption-reduction projects, operator companies not only contribute to energy efficiency but also earn economic benefits—such as tradable energy-saving certificates. This model forms a bridge between the public and private sectors and establishes a win-win-win framework for operators, consumers, and the government.
In this model, once verified savings are achieved, the resulting benefits—defined as energy-saving certificates—are granted to the operator company. Depending on the project, either direct responsibility for execution or the resulting energy-saving benefits are assigned to the operator.
Could you elaborate on this win-win-win mechanism?
To illustrate, an operator company signs contracts with several gas consumers. NIGC reviews the historical consumption data of those customers and compares it with current figures. Any reduction in consumption relative to previous patterns results in the issuance of an energy-saving certificate in the operator’s name.
These certificates can then be sold on the Iran Energy Exchange at market rates, creating a real financial incentive for operators. While household gas is purchased at subsidized prices, the savings certificates can be traded at free-market rates, allowing operators to profit from genuine efficiency gains.
Consumers also benefit: operators typically replace outdated systems or introduce more efficient technologies to reduce consumption. In some cases, part of the financial gains from energy savings may be shared with consumers to further encourage cooperation. The exact terms depend on each operator-consumer agreement.
What is NIGC’s role in this model?
NIGC does not directly intervene in these agreements but closely supervises them to ensure consumer rights are upheld and contracts are fair. The initiative is structured as a win-win-win system: the operator gains from savings, the consumer benefits from better equipment and lower costs, and the government gains from reducing waste and redirecting energy toward productive sectors.
Ultimately, each unit of saved energy is guided toward uses that yield higher economic returns. The overarching goal is to redirect gas from low-yield household consumption to industrial and productive applications—so that society as a whole benefits.
What role do industries play in energy-saving projects?
In addition to operator companies, industrial facilities themselves can participate in efficiency projects. For instance, an industrial unit that reduces its energy use from 1,000 to 800 units through technical upgrades receives tradable savings certificates proportional to the reduction. Such initiatives are formalized through energy management or optimization contracts.
Can operator companies also act as wholesale gas distributors?
Yes. Another possible model involves wholesale gas sales. Under this arrangement, NIGC delivers gas at a designated point—such as a pressure reduction station—and the operator manages distribution within a defined area. For example, NIGC could hand over gas at the entrance of a city, and the operator would then supply multiple consumers under separate contracts.
This structure resembles “retailer contracts” used in other countries, where energy operators even have the authority to adjust tariffs. While tariff setting remains a government responsibility in Iran, global experience shows that such models can significantly improve consumption management and help mitigate energy imbalances.
The goal of introducing operator and energy service companies is to develop an effective framework for managing consumption, improving efficiency, and reducing the country’s energy imbalance. The model is based on extensive research, analysis of international business models, and adaptation of proven global practices. Successful implementation requires capable operator firms in two key areas: investment capacity for project execution and strong data analysis capabilities for monitoring consumption patterns. Only under these conditions can the model contribute to sustainable energy management.
Does the plan include regulatory requirements?
To ensure meaningful participation, operator companies must have access to detailed consumption data and patterns. This requires a transparent and accurate mechanism for information exchange between NIGC and operators.
Equally important is the verification of actual savings, a task overseen by NIGC to ensure all reductions are genuine, measurable, and documented. This underscores the need to select qualified companies. The qualification process—currently underway—evaluates financial strength, technical expertise, and operational experience to ensure chosen firms can effectively carry out projects.
During implementation, operators’ performance will also be continuously assessed to track progress and verify savings outcomes. Companies begin with pilot projects, and their long-term participation depends on verified results.
Has the ministry issued formal authorization for this plan?
Yes. The Ministry of Petroleum has officially issued and sent the directive to NIGC. The company is now preparing a public call to identify and recruit qualified operator firms, marking the first step toward implementing the plan.
The establishment of energy operator companies is a major step toward reforming Iran’s gas consumption structure. Currently, a significant portion of gas is used in low-value sectors. By implementing this plan, part of that energy can be redirected to productive economic activities—benefiting industry, consumers, and the state alike.
Operator companies can act as a vital bridge between the public and private sectors, creating economic incentives that lead to genuine efficiency gains. Global experience demonstrates that where savings markets have developed, energy imbalances have steadily declined.
NIGC hopes that through careful, phased implementation, this initiative will help reduce energy imbalance, enhance efficiency, and generate greater added value for the national economy. The program marks the beginning of a movement in which every stakeholder—from individual consumers to industry and government—emerges as a winner.
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