Yangon electricity revenues up 65pc

Yangon Region collected K36 billion more in electricity payments for the month of July, which is a 65 percent increase compared to the month before, said Daw Soe Soe Nwe, general manager of Yangon Electricity Supply Corporation (YESC), at a press conference on Monday.

The higher revenues was due to the Ministry of Electricity and Energy raising electricity charges on July 1 to reduce the burden of the government in subsidising tariffs.

Yangon Region, which consumes more than half of the country’s electricity, received more than K91 billion in electricity fees for the month of July compared to K55 billion in June, according to the YESC.

“We received K12 billion in electricity bills paid by households and K24 billion more from other users,” said Daw Soe Soe Nwe.

The rise in revenue came even though some 1.4 million users in Yangon Region reduced their usage of power by a total of 21.9 million units in July.

YESC data showed that 26pc of users consumed 1 to 75 units per month, 38pc consumed 75 to 200 units per month and 36pc consumed more than 200 units per month after the change in electricity rates.

Under the new rates, electricity now costs K35 to K125 per unit for households and up to K180 per unit for commercial users.

In comparison, the ceiling price for households was K50 million per unit for households and up to K150 per unit for commercial users before prices were raised. At those levels, tariffs were mostly lower than the cost of production and distribution, with the government subsidising the balance. The average production cost for each unit is K 114.6, which includes distribution cost.

According to the data from Ministry of Electricity and Energy, the government forked out more than K 400 billion in tariff subsidies in fiscal 2016-17 and more than K600 billion in fiscal 2017-18. Subsidies are expected to exceed K500 billion in fiscal 2018-19.

To meet its target of providing electricity to the whole of Yangon Region by December 2020, the Yangon Region Government is planning to spend more than K100 billion between fiscal 2018-19 and 2020-21 to build the necessary infrastructure required, YESC officials said.

Source: Myanmar Times

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