Electricity likely to cost more from May 1 in Mongolia
A formal announcement is yet to be made but it is almost certain that Energy Regulation Board will go ahead with its previously declared intention to raise electricity price in Ulaanbaatar from May 1 charging MNT110 for a unit instead of the present MNT79. The board has mentioned two basic compulsions behind its decision.
First, equipment needs a near total overhaul and this is expensive. Almost all equipment in the transmission network for the central region was installed between 1960 and 1980, and cannot any longer meet the needs of the vastly increased present demand. Money must be found for maintenance, repair and upgrading.
Second, MNT264.5 million is the share of the central region network of the total interest now due on foreign soft loans used for several projects and programs. The Ministry of Finance has also determined that power and heating companies in this region have to repay MNT928 million as part of what was borrowed from foreign organizations. This was to be paid in 2011 but the companies have been given another year.
Source : News.mn
First, equipment needs a near total overhaul and this is expensive. Almost all equipment in the transmission network for the central region was installed between 1960 and 1980, and cannot any longer meet the needs of the vastly increased present demand. Money must be found for maintenance, repair and upgrading.
Second, MNT264.5 million is the share of the central region network of the total interest now due on foreign soft loans used for several projects and programs. The Ministry of Finance has also determined that power and heating companies in this region have to repay MNT928 million as part of what was borrowed from foreign organizations. This was to be paid in 2011 but the companies have been given another year.
Source : News.mn
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