The
accumulated loss in the energy sector rose from MNT24.4 billion in 2008 to
MNT69.9 billion in 2009. Now, says Ts.Bayarbaatar, Chief of the Energy Board,
the situation is looking up after the State Budget allocated MNT15 billion to
the sector. Some more money is coming from raised electricity tariff also. The
power stations have settled their dues to the railway.

He has said the massive increase in demand for energy is their major worry now.
The present demand is for generation of 170 million kilowatt hour of
electricity and this requires 70,000 extra tons of coal. The main supplier to
Ulaanbaatar power plants is the Baganuur mine which still charges at old rates,
but power stations in Darkhan and Erdenet are facing difficulty as their coal
comes from the Shariin Gol mine which has been privatized and has raised its
coal price.

The
budget allocation was a loan and has to be paid back by December 10, but
Bayarbaatar was sure companies would have no problem with this.

The winter preparations have gone smoothly except for the late announcement of
the tender for Power Station III. 
Ordering furnaces from Russia was delayed and the existing ones have not
been adequately repaired, but he hoped this would not cause any major
disruption this winter.