The Inflationary Effects of Increasing Electricity Price - in Different Consumption Tariffs - on Economic Activities and Household Cost: Input-Output Method

Reducing or eliminating subsidies for the electricity sector in the economy is a good way to control the daily consumption of electricity and balance the cost of supply and demand players. By increasing or decreasing electricity subsidies, indirect taxes are reduced or increased. Under these conditions, assuming the stability of primary inputs and the stability of power generation technology and based on input-output modeling, the effects of rising electricity prices on the prices of manufactured goods in the 75 economic sectors were measured. The results of this simulation, which was performed under three models of electricity price increase of 7%, 16%, and 23%, show that the "communications", "manufacturing of food products" and "manufacturing of non-classified non-metallic mineral products" sectors are the highest. Taking into account the total benefits of increasing the price and its socio-economic costs for residential subscribers, the scenario of "increasing the tariff price of residential subscribers by 7%", "increasing the tariff price of public consumption by 16%", "increasing the tariff price of Water and Agriculture Production subscribers by 16%", "Increasing the tariff price of Industrial and Mining Production Subscribers by 23%" and finally "Increasing the tariff price of Other Uses Subscribers by 23%" can be a proposed tariff in increasing the price of electricity.