If the fee is higher than last year, the citizens will pay themselves

Today / December 16, 2020 /, the Government introduced a regulation on setting limits on energy consumption and covering the difference between citizens and business entities.

The Minister of Energy, N.Tavinbekh, said, “Last week, the government decided to pay for energy, water, heating, and waste to support citizens and some businesses in overcoming the economic difficulties associated with the pandemic. Here is the procedure issued by the resolution.

In terms of consumer rights and obligations, the state will cover the cost of electricity and heating during the grace period equal to the same period of the previous year. The regulation states that the consumer is responsible for the payment over this consumption. For example, a consumer who paid MNT 30,000 for electricity or heating in December last year will pay MNT 10,000 if he pays MNT 40,000 this month in 2020. Minister N.Tavinbekh said that electricity consumption had increased sharply due to the cancellation of payments. Consumption reached 1,308 MW on 15 December 2020, an increase of 200 MW from the same period last year and 108 MW from the day before the decision. According to our estimates, the increase in energy consumption will be 2-3 times higher. Especially between 17:00 and 21:00, businesses will have to reduce their electricity consumption by 20 percent, while households will have to reduce their electricity consumption and not deal with heating.

Due to the government’s decision, there is a lot of illegal and artificial use of energy. Unused buildings and areas are heated by electricity, and non-standard electrical equipment and telephones lead to high utility bills. Therefore, the government has approved this regulation to prohibit and restrict energy use by individuals and businesses during the period of payment.

At a time of economic hardship caused by the pandemic, the reduction in the cost of living for households and businesses, the preservation of jobs, and the decrease in government subsidies have provided significant financial support. Public participation is essential in implementing this decision. Therefore, citizens are urged to use energy properly by this regulation.

“THE STATE WILL BE RESPONSIBLE FOR PAYMENTS FOR ELECTRICITY AND HEATING 728 THOUSAND CONSUMERS”

There are 738,000 consumers of electricity and heat nationwide. The government is responsible for 728 thousand or 98 percent of these electricity and heating bills. He said that he would issue a regulation after the decree is issued. We are monitoring the situation and making a decision three days later. For new consumers, energy consumption is calculated using the methodology. Today, there are several studies on which areas and which consumers consume how much energy. 96% of the total energy consumption is spent on household consumption, especially in ger areas. This means that households and businesses’ consumption of electricity and heat will increase by 6-7 percent and will be relatively low. In Nukht, a private ger district where energy consumption is rising, exceptional energy consumption has even doubled. As mentioned above, unused buildings and apartments were heated by electricity. Citizens should use this expensive product properly.

“THE FIFTH THEATRICAL POWER PLANT STOPPED COMPLETELY”

The government’s action plan calls for the construction of nine new sources to meet growing demand and reduce imported energy. We will expand the third thermal power plant by 325 MW. A further 450 MW thermal power plant will be built based on the Tavan Tolgoi coal mine. Also, nine sources will be made in Erdeneburen soum of Khovd aimag, including a 90 MW hydropower plant. This will increase the energy sector’s capacity by 1,800 MW, or five times the current level.

From the very beginning, a lot of basic research lacked at The Fifth Thermal Power Plant. This is one of the reasons for the return of work. Second, construction was halted due to major foreign companies’ refusal to participate in the construction work. The government’s action plan does not include the construction and operation of the Fifth Thermal Power Plant. Instead, it has built new sources of energy based on coal mines.