A recent assessment by Eco Iraq has highlighted a significant imbalance in Iraq’s electricity sector, pointing to a wide gap between monthly expenditures and collected revenues.

According to the analysis, Iraq spends nearly 600 billion Iraqi dinars per month on the electricity sector. However, the monthly revenue generated from electricity bill collections reportedly does not exceed one billion dinars.

The report states that most of the sector’s spending goes toward salaries, maintenance, and fuel purchases, rather than long-term investment or expanding production capacity. Current electricity generation is estimated at approximately 28,000 megawatts, while national demand is estimated at around 50,000 megawatts.

Eco Iraq’s assessment suggests that the revenue collected represents only about 0.17% of total monthly expenditures in the sector. The organization argues that this disparity reflects weaknesses in financial management and revenue collection systems.

The analysis concludes that the persistent gap between spending and income places additional pressure on Iraq’s public finances and contributes to ongoing fiscal challenges.