Minister for Mineral Resources and Energy D.Zorigt answers our reporter’s questions on the proposal to increase electricity and heating rates that he submitted at yesterday’s Government meeting.

Is the increase certain?
The Energy Regulatory Authority (ERA) has independent status and has the authority to fix electricity and heating rates. The Unfair Competition Regulatory Agency would now review the decision and if they think it is justified, the increase will take effect. The proposal is to charge MNT4 more per kilowatt and since 60% of households use less than 150 kw, the extra monthly burden on them will be just MNT600.

The original proposal was to raise the cost per kw to MNT92, but the Confederation of Trade Unions and the Confederation of Employers’ Unions persuaded the energy agency to bring it down to MNT84.

What about commercial users?
They have been divided into two types. Non-mining users will pay MNT88 instead of the present MNT80 for a kw, while the new rate for mining companies will be MNT100.  Electricity Transportation LLC and vulnerable households will continue to pay at the old rate, and the charges of night time use have also not been raised. Besides, the heating rate has not been increased for organizations.

Why?
It was felt that raising this could impact citizens’ living.