Domestic consumers have been given a respite until June 1 but commercial users will be paying more for their electricity from this Friday.  On an average, power costs will go up by 17.35 percent and those for heating by 14.5 percent. What effect will this have on prices of foodstuff made here, especially bread? The regulators have estimated that consumer goods prices will increase by 0.7-1.8 percent. A loaf of bread, they say, will cost MNT10.6 more, one kg of flour MNT4.6-5.3 more, and a liter of milk MNT5.8 more.

We asked some leading food factories how the rates rise will be reflected in their product prices and found that producers have little time for these calculations. After all, businesses are run for profit and not on patriotic grounds. Most bread and fancy cake makers explained that all their work requires electricity, which accounts for as much as 10 percent of their total production cost.

At present, there over some 60 bakeries in Ulaanbaatar. Much of their work is between 10 pm and 6 am, when they get electricity at cheap rates. But this MNT46 per kilowatt becomes MNT79.8 during the day, and MNT 133.9 between 5 pm and 10 pm. Heating costs are extra, and so are those for hot water. There is no way a fair estimate can be made on how much prices should be allowed to rise, so the consumer should be prepared for the worst. S. Ganbaatar, Head of the Mongolian Labor Union, has promised to take up the matter with the competent authorities but it is better to accept that we have been given a Tsagaan sar gift that we cannot refuse.