Ulaanbaatar, November 18, 2024 /MONTSAME/. The Energy Regulatory Commission is set to increase electricity tariffs from November 15, 2024. The Energy Regulatory Commission has announced that the average electricity tariff will be raised from MNT 216 per kWh to MNT 280. The changes were made in a way to not overburden households financially and encourage them to monitor their energy consumption and save energy.

A three-tier tariff based on consumption is to be introduced. The average household tariff was previously MNT 140, but under the revised tariff, consumption up to the first 150 kWh in a month will be charged at MNT 175, consumption between 150-300 kWh at MNT256, while consumption exceeding 300 kWh will be MNT285.

In other words, if consumers use energy efficiently, they will be charged at a lower price and pay less. This will result in a change of MNT 35-131 per kWh of electricity consumption. The average monthly electricity consumption of households nationwide is 220 kWh, and the monthly electricity bill was MNT 36,220. Therefore, the new tariff will add an average of MNT 15780 to the electricity bill of a household in a month, noted the officials of the Energy Regulatory Commission.

Chair of the Energy Regulatory Commission Tuvshinchuluun Erdenechuluun emphasized, “The energy sector is operating at a loss, as it is selling electricity and heat below the cost of production. If this continues, normal operations of the energy industry will be disrupted. Therefore, there is a need to increase prices. Two main issues were taken into account when increasing prices. We plan to bring the price of electricity and heat to its production cost while adding the lowest possible financial burden on consumers.”

According to a study, 45 percent of the 788 thousand households in Mongolia consume electricity up to 150 kWh each month, 40 percent use 150-300 kWh, and 15 percent use more than 300 kWh.

In addition to the current two tariffs for electricity, daytime and nighttime, a new evening “Peak Hour Tariff” is being introduced. The nighttime electricity discount for households in Ger districts will continue to apply. In addition, the tariff for households in need of social welfare support and assistance will remain unchanged.

The electricity tariff for businesses and organizations will be increased by an average of 30 percent.

Household electricity and heating tariffs in Mongolia have not changed in five years since 2019. Therefore, the Energy Regulatory Commission highlights that the tariff change that adheres to market principles will create conditions to ensure the financial and economic self-sufficiency of the energy sector.