Ministry flags electricity price rises after negotiations finalised


NAY PYI TAW — The cost of electricity is set to rise for residential and business users but the scale of the increase is yet to be decided, the Ministry of Electric Power and Energy said on May 11.

The ministry’s deputy permanent secretary, U Htay Aung, told a news conference in Nay Pyi Taw that the increases would be based on location, usage and type of consumer.

“The decision would be based on how many consumers were using how much electricity in which locations and at what times,” Htay Aung said.

“We will publicise the increases when the time comes,” he said.

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Ministry officials told Frontier that details of the price rises were being finalised.

New electricity rates were discussed by ministry, state and regional energy officials and Pyithu Hluttaw MPs at a meeting in the capital on May 8.

Negotiations with state and regional officials about the price rise were continuing, said U Myint Oo, the deputy director of the Electricity Management Department.

An attempt to raise electricity prices by the previous Thein Sein administration in November 2013 was abandoned because of public opposition.

The current charge for residential consumers is K35 a unit for up to 100 units, K40 for up to 200 units and K50 for more than 200 units.

Business users are charged K75 a unit up to 500 units, K100 for 501 to 10,000 units, K125 for 10,001 to 50,000 units and K150 for 50,001 to 300,00 units. Consumption above 300,000 units is charged at K100 a unit.

U Soe Myint, the ministry’s permanent secretary, said in a statement that the government was spending K333 billion a year in subsidies and supplying electricity to 37 percent of the country.

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