The Energy Regulation Department has agreed to postpone the raise in domestic electricity tariffs until June 1, following a demand by the Mongolian Labor Union for a review of the data. However, commercial customers will have to pay at the new rates from January 15.
That will also be when heating costs go up. According to the director in charge of price department, M.Ganchimeg, all companies producing heating and electricity are losing money. “We decided to raise the tariffs because there was no other option. If we don’t, the combined loss would reach MNT3 billion by June. Even so, we’ve decided to cut internal expenses and postpone the increase until June,” he said. The Energy Regulation Department is planning to ask the Ministry for Minerals and Energy to waive the VAT on energy consumption payment. If this is approved, the tariffs could change.
Night time electricity payment such as street illumination will be made 50 percent cheaper.