Thailand
Myanmar: Ministry plans to raise electricity rates with minimal impact on citizens
The Ministry of Electricity and Energy (MOEE) has plans to increase the electricity tariff in order to reduce its losses due to the difference between the cost of generating and distributing electricity, said U Htein Lwin, Permanent Secretary from MOEE.
At the press conference to announce the ministry’s one-year performance, U Htein Lwin said that the tariff hike would not burden lower-income citizens.
“The tariff hike is under consideration to minimise the impact on the grassroots,” he said.
“While those who can afford are using air-conditioners, the ordinary people only use electricity for lighting and thus the impact of tariff hike on them must be minimised,” he said.
The financial losses from electricity generation and distribution in the 2017-18 budget year are estimated to be K133 billion. Therefore, MOEE is reviewing the ways to increase the tariff in order to reduce the amount of losses.
The ministry will hold consultations with Hluttaw representatives and other departmental officials before deciding on the new tariff rates, U Htein Lwin said.
U Aung Zaw Myint, a Hluttaw Representative from Pyithu Hluttaw Electricity and Energy Development Committee, also said that electricity tariff rates must be increased at the appropriate time for there have been huge losses in the electricity sector.
“It shouldn’t go on like that. Therefore, at an appropriate time, electricity tariff rates must be raised,” he said.
U Htein Lwin said that the government was also working through the problem of a lack of electricity sources, as power demand has increased.
Hydropower projects are the most cost effective but those projects result in negative environmental impacts, as does coal power generation.
The production of natural gas, another electricity source, is declining and electricity generation from solar power and wind power is too costly.
“We cannot go without doing anything because of these objections,” said U Htein Lwin.
“Therefore, awareness and education programs for the residents are going to be conducted at the locations for hydropower and coal power generating projects,” he added.
U Htein Lwin from MOEE said the Myitsone project will follow the findings made by State-level commission.
“The findings of that commission will be released and our department will follow the findings of the commission.
“Based on their reviews and findings, we will lay out the forward plan of that project to the public,” he said.
The ministry will also embark on a public education program for energy saving, in the light of the increase in demand for electricity by 5 to 7 per cent every year.
Source: http://www.mmtimes.com/index.php/national-news/25615-ministry-plans-to-raise-electricity-rates-with-minimal-impact-on-citizens.html