The Ministry for Energy has named 2013 as the year of energy saving and gaining benefits.

The Mongolian energy sector provides 414,000 households with electricity via 7 Power Plants and a number of sub-stations in 5 regions.

Electricity use has increased 8-10 percent a year as Mongolian economic growth accelerates year on year.

The electricity system produces up to 700-780 megawatts. But at peak time the restrain reaches up to 860-865 megawatts.

However Mongolia targets to run energy sources equal to operations in the energy sector. But the supply has not met demands yet and the date for operational is too early.

Therefore on Friday D.Sonompil, Minister for Energy, D.Dorjpurev, Deputy Minister for Energy and other officials held a press conference with journalist calling customers to save energy and use energy efficiently.

-Is it the right solution allowing customers to use electric heaters and encouraging them to use them during demand high time. Is there any way to reduce air pollution except this?

-This is very controversial. During the peak time from 17.00 to 21.00 supply does not meet demand. But we do not intend to ban using electric heaters. If customers can manage to use electricity from 22.00 pm to 06.00 am it will be helpful for electricity distribution. The electricity use costs 36 MNT per a kW  h during this time.

That`s why we suggest customers save electricity during peak time.

-How is the progress of V Power Plant’s construction?

-We hope the V Power Plant deal will be signed and will be operational soon. The new Government made a decision on the issue last December. The V Power Plant construction is expected to be started in the first quarter of 2013.

-What is the policy on energy? The electricity tariff is expected to be increased. Will there be a difference between the tariffs?

 -The electricity tariff increase is necessary. Currently power suppliers loss is estimated over 50 billion MNT. We spend 30 billion for operation expenditure. We do not intend to make a difference. But we want electricity costs to be reasonable in economically beneficial sectors.  The electricity is sold cheaper than its import costs.
But people should not take seriously the tariff increase. For instance there will be no increase for households where electricity use is lower than 200 kW h.

According to an estimation almost 80 percent of customers use electricity less than 200 kW h.

We keep negotiating with the Authority for Fair Competition and Customers` Protection on the issue about electricity tariff increase.