Government resubmits proposal to increase electricity fees

In the bill resubmitted on Monday, the new charges will come into effect on April 1, the beginning of the next fiscal year.

The selling price of electric charges for government offices and home use is Ks 35 per unit, or Ks 75 per unit for industrial use. In a letter from the president to the parliamentary chairperson, Thein Sein said that only 30 per cent of Myanmar households have access to electricity.

According to present electricity bills, the state has to spend Ks 284 billion as subsidies per year. With fee increases, the subsidies will fall to Ks 12-55 billion under three options provided.

To distribute electricity in a short time, the building of power plants, sub-power stations and extensive power grids will be needed. To implement such infrastructure without operating at a loss, fees must be charged fairly. The government alone cannot achieve this and will need the cooperation of both local and foreign investors, said Khin Maung Soe.

The Ministry of Electric Powers has to buy electricity from Yadanar, Ye Tagun and Zawtika with 1MMBTU at a cost if US$ 5; from Shwe natural gas with 1 MMBTU at US$ 12. The State has to spend Ks 70 per unit from Thaukyaykhat hydro power plants. Due to the conditions, about Ks 284 billion has to be spent during the 2014-15 fiscal year.

In order to reduce prices for electricity the state is now using, electricity bills have to go up. If the state gets more income, they can build power plants and sub-power stations in the places where electricity is lacking, added the minister. The consumption of electricity is increasing by 15 percent annually. In order to solve the problems, the state has laid plans. Due to financial crisis, however, the state cannot handle the burden on its own and there is still insufficiency in the provision of electricity.

“The government should consider increasing electricity fees for those who need electricity. Moreover, guarantees should be laid down as to how the government plans to supply electricity by using income tax for the rural and urban areas where electricity cannot be accessed,” said MP Khin San Hlaing.

MP Myat Nyan Na Soe said that the president believes that the public needs to be thriftier in its use of electricity. Although electricity cannot always be accessed everywhere in the nation, Nay Pyi Taw, the new capital of Myanmar, now enjoys 24/7 electricity, even in places where no one lives. So the government needs to review the cases, said Myat Nyan Na Soe.

 

“Nay Pyi Taw Declaration” to cover a range of reform issues

The ministries of Foreign Affairs, National Planning and Economic Development, and Culture will next month jointly issue a “Nay Pyi Taw Declaration” aimed at developing new government policy on transnational crime, food and security issues, the upgrading of small- and medium-sized enterprises, as well as human rights and poverty reduction issues.

The declaration was announced at a press conference for the ASEAN Social-Cultural Community Council in Myanmar, held at the National Museum in Yangon on Wednesday (on March18).

“The declaration, which will include President Thein Sein’s guidance, will be released at the meeting of the ASEAN Social-Cultural Community Council to be held in April,” said Ministry of Culture Director-General Nandar Hmun, who serves as the Council’s Myanmar secretary.

“Our council is not popular. But we have been working on social and cultural development tasks in Myanmar for a long time, together with twelve ministries. That’s why we are explaining what we are doing now.”

The ASEAN Social-Cultural Community Council meeting will be held in Nay Pyi Taw from April 2-4 before the ASEAN Summit and related meetings to be hosted by Myanmar.