New Electricity Rates Set This Month

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Electricity rate increase alarms Lao residents

Authorities have set new electricity rates for households, organizations, and businesses this month throughout the country.

According to a notice issued by the Ministry of Energy and Mines (MOEM), Lao Authorities have decided to increase electricity prices for households and small businesses by 2 percent, effective this month.

Notice on Electricity Rate Increase, March 2021
Notice on Electricity Rate Increase, March 2021

The total bill for a typical residential customer who consumes more than 500 kWh per month will rise by LAK 20 per kWh, whereas those who use less than 500 kWh per month will see a slight reduction in the bill.

The MOEM last set electricity prices in 2017, and this rate does not include Value Added Tax.

Special exemptions have been awarded for projects with a purchase agreement with Electricite du Laos, particularly Lane Xang Minerals Limited (Sepon Mines),  Phu Bia Mining, Dok Ngiew Kham Special Economic Zone, and the Golden Triangle Special Economic Zone.

Electricite du Laos had provided discounted electricity rates during the Covid-19 period, with adjustments made for those using between 151 – 461 kilowatt-hours (kWh) per month during the Covid-19 period, beginning in June last year.

However, the country’s state power company announced yesterday that discounted rates offered during the Covid-19 period have come to an end and ordinary pricing will be reinstated this month.

An increase in electricity rates in April last year took Lao residents by surprise amid an economic downturn due to the Covid-19 pandemic, with many turning to social media to air their complaints.

After concerns were raised at the Party Central Committee, government, and National Assembly, the government took the matter into consideration. Concerned for the people, the government instructed the sector to restructure electricity pricing.

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