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Sunday, May 24, 2009

Householders to pay more for electricity from 2009 to 2015

(KPL) Householders would be paying more money for domestic electrical consumption as the main electricity company, Electricite du Lao declared a 15 per cent increase for household electricity in 2009.
According to a tariff study report that was made public at a workshop on 19 May, the increase would be implemented some time this year.
The report further stated that the there would be a gradual annual increase in the price of electricity so that by the year 2015 it would hit the maximum price of 25 per cent.
EDL report said that the price increase would be adjusted to the cost of production, capital expenditure and distribution.
This report also argued that there is a need for price increases at different price levels for this year and the next two years: 10 percent for 2009, 17.3 per cent in 2010 and 16.4 percent in 2011.
Deputy Minister of Energy and Mines Mr Somboun Rasombath said that the rationale for higher electricity charges is closely related to the social and economic growth of Laos.
The EDL, he added, the provider of sustainable electricity service to the users gets cash from them, which would be channeled to the development of electrical infrastructure and to the building of networks to give electricity to rural areas.
He projected that the average annual rate of increase in the usage of electricity would be as high as 19.5 per cent till 2016 and this situation is exacerbated by high electrical demand in the industrial and mining sectors
The price increase for these two sectors, he said, would be six per cent in 2009, 15 per cent for 2010 and 10 per cent for the next two years, 2011 and 2012.
Regarding this year's increase, Mr Somboun said that an announcement would be made at the end of this year.