Electricity sector could lose K630billion in 2018-19

The electricity supply sector is forecast to lose about K630billion in the coming 2018-19 fiscal year, said Dr Tun Naing, deputy minister for Electricity and Energy, told Pyidaungsu Hluttaw yesterday.

“Power generation and distribution is expected to lose about K629.9 billion in the fiscal year of 2018-19,” Dr Tun Naing said during his presentation.

In 2017-18, the electricity sector chalked up losses of K507.9 billion, which is about K100 billion less than expected, he said.

The National Electricity Project (NEP) is being implemented and therefore, power consumption of each household has increased dramatically, he said.

When the new government took power on March 31, 2016, only 34 percent of households were able to use electricity supplied from the national grid. That has increased to 40pc as of June, he said.

“Household power consumption increased by 6pc in more than two years. If it will continue to increase 6pc in the next 2.5 years, the total power consumption will be 46pc,” he said.

The ministry is expecting at least 55pc of Myanmar households will receive access to power by the end of the current government’s term in 2020.

To meet its forecasts, the ministry has asked Parliament to approve its proposed spending plan on energy infrastructure without making any cuts.

The ministry is planning to spend K1.86 trillion on energy in 2018-19 versus earnings from the sector of K1.22 trillion, resulting in a loss of around K630 billion during the period.

It is also considering raising electricity prices to offset a portion of those losses.

Source: Myanmar Times

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