Free nighttime electricity to cause MNT 25.8 billion deficit

U.Badamtsetseg

2017-01-02 17:30 GMT+8

The Government has approved a regulation to cut electricity night tariff for ger district households to zero, especially from 9pm to 6am, aiming at reducing air pollution of the Ulaanbaatar city. 

The discount has come into effect from Jan 1st, 2017 and projected to finish on Mar 1, 2017. 

Over 146 thousand residents, living in ger district will benefit the electricity tariff discount. 

Every winter, the amount of particles in air has been rising, particularly in ger-areas of Ulaanbaatar city where two third of population live in houses and traditional dwellings that have no connection to the central heating system. From November to March, the citizens of Ulaanbaatar city face the worst air pollution caused by heavy coal burning. 

The Government has faced MNT 3.2 billion deficit since 2015, when began providing a 50 percent night tariff discount on electricity to ger district households. 

However this year, providing free electricity to ger district households at night is expected to cause MNT 25.8 billion deficit. 

"Nighttime electricity tariff discount for ger district households may bring negative impact on the energy system.​ Residents should control and limit their energy consumption. Also residents should notice that there are limited resources and capacity of energy for production", reports Minister of Energy P.Gankhuu. 

The Government has approved MNT 3.2 billion for 2017 City Budget​ to reduce air pollution.​ Of which 80 percent will be spent on night tariff discount. Further, the country is planning to use technology to produce heat with electricty and gas. 

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