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Electricity Tariff Twice Cheaper than Its Cost www.montsame.mn
Chairman of the Executive Office of the Energy Regulatory Commission B. Bolor-Erdene informed journalists today about the real cost, consumption and demand of electricity in Mongolia.
The cost of electricity is currently MNT 224 for one kWh and it is sold to consumers for an average of MNT 211-213. Household consumers purchase one kWh of electricity for MNT 141-142. This is 58 percent lower than the actual cost. As for heating energy, consumers get 55 percent lower of its cost; loss is proportionate. Last year the energy sector’s operating loss amounted MNT 187 billion.
The losses are increasing. This leads to such risks as an increase in debts, inability to carry out necessary maintenance and repair at thermal power stations and heating and electricity networks, and delay of equipment renewal.
This situation will negatively affect the reliable supply of electricity and heat to consumers. The urgent need to bring the price of energy to its real cost is obvious. However, electricity consumption in 2022 has increased by 5.8 percent from the previous year amounting to MNT 10.3 billion nationwide. Out of total power, 79 percent is produced domestically, and 21 percent is imported. Here, electricity from Russia and China dominates.
To build a new energy source, tariffs must be approved according to the Energy Law. If the price is lower than the cost, it naturally will negatively affect on investors. Therefore, tariffs should be kept at a level that supports and satisfies investment.
Consumers really need to save electricity, in particular, during peak hours. In general, the Law on Energy Conservation defines the consumers who are obliged to save energy. To be clear, the threshold of their electricity saving has been updated by the Government's resolution this year. There are some 330,000 users who have such an obligation. They consume 40 percent of the total energy. In total, there are 812,000 electricity consumers and some 450,000 heat consumers nationwide.
The Law specifies that responsible consumers should have an energy efficiency manager. These managers promote, coordinate and implement ways to save energy. In addition, the Energy Audit Organization is operative.
There are 114 auditors engaged in energy saving, advising consumers on electricity efficiency, conducting audits, and determining causes of energy loss. The Commission aims to bring the auditors to the international level through training and implementing relevant projects and programs.
Published Date:2023-05-10
