MP and Minister of Mongolia, Ch.Khurelbaatar, talks about the decision of the Council of Regulators of the Energy Regulation Department to raise electricity and heating tariffs and explains the Government’s position in answer to questions.

The Energy Regulation Department has decided to charge MNT11.8 more per kilowatt of electricity and MNT1,467 Gcal more for heating. Did the Government know of this?

Since 2001, the Energy Regulation Department has had full rights to raise or reduce electricity and heating tariffs. The Government has no say in the matter but we certainly have our own opinion. Accepting the financial problems the energy sector is facing, the Government budgeted an additional MNT20 billion to the sector, hoping this will render it unnecessary to raise tariffs. Thus, the Government disapproves of the decision. The related ministry was notified. We think there is enough scope for energy organizations to improve their capacity and efficiency.

Did the Government discuss the issue?

The issue of raising tariffs was not discussed at Government meetings, as we had not expected the decision after we had provided the additional funds. It has been wrong to raise the tariffs even after what the Government did.

Does the Government have the right to cancel the decision?

No. The Energy Law is clear about this.