No immediate plans for tariff increase: Ministry
14-05-2018
The Ministry of Electricity and Energy has no immediate plans to increase electricity prices for consumers, despite a widening chasm between what it costs to generate electricity, and what the government receives.
Subsidies cost about Ks450bn ($330m) in 2017-18, an increase on about $275m for the previous year.
Ministry permanent secretary U Tin Maung Oo said in a Myawaddy article that with the amount of electricity production and distribution increasing, the gap will only increase.
Over the long term, a solution will be needed that suits both the ministry and the public, he said.
The ministry’s current focus is on providing regular electricity distribution at a stable voltage. Prices will be increased only after public trust has been gained for electricity provision, he said. U Tin Maung Oo added prices will be acceptable to the public, once they are eventually raised.
Talk over the tariff has recently subsided. One year ago, it appeared a possible price increase was imminent, and the need for a tariff increase was frequently covered in media reports.
However, increasing prices would doubtlessly provoke opposition among users, and would be a politically difficult decision to make. More recenlty, the goverment's talking point is that service improvements are needed to obtain buy-in among consumers, before the price is increase.
It is therefore difficult to say as to when the price will actually be increased.
The current price for users is as follows:
|
Residential users |
Price per kWh |
|
Up to 100kWh |
Ks35 |
|
From 101kWh to 200kWh |
Ks40 |
|
From 201kWh and above |
Ks50 |
|
|
|
|
Industrial and Commercial users |
|
|
Up to 500kWh |
Ks75 |
|
From 501kWh to 10,000kWh |
Ks100 |
|
From 10,001kWh to 50,000kWh |
Ks125 |
|
From 50,001kWh to 200,000kWh |
Ks150 |
|
From 201,001kWh to 300,000kWh |
Ks125 |
|
300,001kWh and above |
Ks100 |
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