YESC Stepping in to Provide Electricity

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Yangon Electricity Supply Corporation (YESC) has pledged to support the electricity infrastructure for developers in Yangon.

On August 12 last year, the YESC announced that all developers applying for a Building Completion Certificate (BCC) from Yangon City Development Committee (YCDC) would need to determine whether or not the building required the installation of a private transformer to provide additional power to the structure. The new rule was intended to cope with increased urbanisation, which is putting cost pressures on electricity supply, authorities said at the time.

Now, developers do not need to install the transformers because the YESC has issued a new directive on February 15.

The old policy stated that developers in the city would be obliged to install transformers to supply power for new buildings which consume more than 30 kilowatts of electricity per day. But that directive faced backlash among the developers who were overwhelmingly against the idea. As a result, 40 construction firms sent a joint letter on September 28, 2016 to the Yangon Region government to protest against the policy and lobbied for a change.

Local developers who signed the letter said that not all construction firms can afford to finance the installation of transformers and this cost will inevitably be passed onto apartment buyers.

“The bigger the building, the more expensive it will be to provide power, which means contractors are likely to choose low-quality transformers. This will have a negative impact on residents,” U Yan Aung, a contractor, told the Myanmar Times at that time.

The regional government then replied that they would re-consider the issue.

The new directives state that the government will support electricity for new eight-story buildings. Hence the developers will not need to set up private transformers.

But developers who constructed the eight-story buildings and who had received BCC for their buildings will now need to pay K550,000 per room to the YESC for electricity access.

The YESC will support the supply of electricity when they have received the payment for all of the rooms in a building. Otherwise, there will be no access to electricity.

Upon full payment, the Corporation will work on electricity supply, such as settling high-voltage power line, installing transformers and extending main service wires.

The negotiation between the regional government, Myanmar Licensed Contractors Association and the YESC resulted in the new arrangement.

U Lar Sal, general secretary of Myanmar Licensed Contractors Association, said that the regional government had been negotiating with them and they agreed to pay K550,000 per room instead of establishing transformers.

“If the developers install private transformers, the cost would be about K30 million for each building, so it would increase the room price. Now, we do not need to install and the YESC is supporting it. The cost will be lower than the alternative [previous arrangement],” he added.

According to U Lar Sal, another problem is the lack of sufficient space for transformer installation if the YESC withdrew its support.

Later on, if room owners have any problems with getting electricity from the YESC, they can get help from the Myanmar Licensed Contractors Association who will negotiate on their behalf with the YESC.

 

Source: The Myanmar Times

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