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EDL cuts power charges in boost to industry
Electricite du Laos has reduced the rate it charges industrial operations for power consumption, in support of the government's efforts to boost investment in industry.
The state-owned enterprise posted an announcement of its electricity tariff adjustments on its website, showing monthly electricity rates for industrial use have dropped since April by 1.3 percent from 599 kip per kWh to 591 kip.
Major industries that use medium voltage electricity will benefit in particular from the new rates as they will now pay 502 kip per kWh instead of 509 kip.
This is the fifth electricity tariff reduction for industry since 2007. The move is in line with the government's policy to help the industrial sector lower production costs and attract more investors to processing industries in Laos, which bills itself as “the battery of Asean”.
The EDL, which holds a monopoly on power distribution, has also lowered electricity rates for government offices by 1.3 percent from 665 kip per kWh to 656 kip. The rates for commercial operations and embassies remain unchanged at 835 kip per kWh, international organisations at 1,077 kip, and entertainment venues at 1,106 kip.
However, EDL has increased the monthly rate charged for electrically powered irrigation systems by five percent from 380 kip per kWh to 399 kip.
In a bid to encourage the public to consume electricity more efficiently, as power usage in this sector does not contribute to economic growth, EDL has also raised electricity rates for household use.
Charges will rise from 234 kip per kWh to 269 kip for consumption of between 0 and 25 kWh per month, and from 310 kip per kWh to 320 kip for consumption of 26 to 150 kWh. The tariff for household consumption above 150 kWh per month remains unchanged at 773 kip per kWh.
The increase in the electricity rate for irrigation has sparked widespread concern about the effect it will have on production costs in agriculture, one of the country's main economic bases. Such a move would further raise prices and put pressure on the already escalating inflation rate.
According to a government report, electricity price adjustments were one of the main drivers of inflation in April. The government is now looking at measures to curb inflation and has assigned state agencies to suggest solutions to the problem this month.
vientiane times
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