Power rates should be raised, but gradually

MPs taking part in last week’s discussion in Parliament on proposals to allow free use of electricity kept on saying the mess in the energy price can be cleaned only if pricing followed market rules. Without citing sources they said most household consumers do not use more than 150 units in a month and wanted all economic entities to be listed among those using more than 150 units. They also suggest higher tariff for the latter while retaining subsidized rates for those using less than 150 units.

Professional organizations, however, say that a common household in ger districts use almost 150 units. Specialists at the Price and tariff Office under the Energy Regulation Board (ERB) say charges would have to be raised a lot if market rules are to be followed. There should be a gradual rise for all from the present rates of MNT79 and 80 per unit to MNT110 in 2013. An ERB survey also finds that the final price will have to be more than MNT110.

Higher electricty prices will certainly lead to many consumer goods getting more expensive.

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