Myanmar: Power subsidy continues to hammer budget

Myanmar: Power subsidy continues to hammer budget

Between April and late December last year, power consumption exceeded 10,000
million units and Ks785 billion was raised, according to the Union
Parliament Joint Public Accounts Committee.

The joint committee submitted its report ahead of this year's budget. The
average individual power consumption was 225 units.

The average cost per unit was Ks69 while the average production cost per
unit is Ks89. The sector loses around Ks20 for every unit sold.

The Myanmar Electric Power Enterprises (MEPE) and the Hydropower Generation
Enterprise have been merged into the Electricity Supply Enterprise.

It posted a net loss of Ks458 billion in 2015-16 and Ks387 billion so far
this financial year. A loss of Ks428 billion is expected for 2017-18.

The government was carrying out loss-making power generation for the
people's benefit, the report said. More losses are expected as power
consumption rises.

Last year, the nationwide power consumption was around 17.8 billion units.
This year, consumption is expected to reach 19.5 billion.

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Link to Original Article: http://www.elevenmyanmar.com/local/8265

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com