A New Model for Allocating Subsidies to Power Distribution Companies for Loss Reduction in Iran

This paper presents a new model for allocating subsidies to power distribution companies to reduce power losses. The reduction of losses by power distribution companies does not substantially impact improving the economic situation of these companies. This situation led the Iranian government to attempt to reduce losses by granting subsidies to power distribution companies. However, the implementation of this subsidy plan faced many issues, including the optimal allocation of this subsidy, because these companies responded differently to the support. This paper presents a new model for allocating and distributing loss reduction subsidies to power distribution companies