Increase in electricity prices will not be reduced - Minister

The Myanmar government will not drop its announced hike in electricity prices, according to the Minister for Electric Power.

The government is facing criticisms over the short-notice raise in electricity prices -- 40 percent higher for private households and double for businesses -- to take effect on November 1.

"We will not cut increased prices. Although it starts in November, people will have to pay the electricity bills only in December. So we informed the people one month in advance," Khin Maung Soe, Minister for Electric Power, told journalists after a parliamentary meeting on October 30.

"Electricity is still very cheap in Myanmar, compared to international prices. Today electricity production is making a loss, so the price increase is to cover that loss," the minister added.

Currently, a unit of electricity costs Ks 35 (US$ 0.35) per unit for general consumption. The newly announced prices will charge Ks 50 per unit for households using over 100 units. Those who use less will pay the usual rate.

For businesses, those using 1 to 5000 units will be required to pay Ks 100 per unit, while those using 5001 units and above will need to pay Ks 150 per unit. They are currently charged Ks 75 per unit.

"In raising prices, we did consider the public. In Myanmar, working and middle-class people use within 100 units of electricity. This is according to our careful study. They will be charged at the usual rate of Ks 35. According to our survey in the states and regions, 70 percent of the population is using under 100 units."

"All the small and medium enterprises are using under 5000 units, and we charge them just Ks 100 per unit. Only the large businesses using above 5000 units will be charged at Ks 150," the minister added.

"The prices will be reviewed every year. If the production costs fall, prices will also fall. If the costs rise, prices will rise. Nevertheless, I don’t see the prospects of further rise. Think about it. When our country has gas turbines and hydropower after a year, we will be able to reduce the prices."

source: Eleven Myanmar
http://elevenmyanmar.com/national/3917-increase-in-electricity-prices-will-not-be-reduced-minister