Around Ks32 billion profit budgeted for electricity sector

Around Ks32 billion profit budgeted for electricity sector
Published 22 August 2019

The government will generate a profit of around Ks 32 billion in 2019-2020 fiscal year as the electricity bill is increased, according to the Public Account Committee’s report. 

The Public Account Committee submitted its findings and remarks on the Union Budget Bill for 2019-2020 FY at the session of the Union Parliament on August 21. 

Aung Min, Chair of the Public Account Committee said: “Since July 1, the ministry has increased the electricity bill. The State-owned economic entities under the Ministry of Electricity and Energy have submitted a budgeted profit of Ks 735 billion. Normally, the profit seems to be linked to a hike in electricity bill. So the ministry describe its profits differently. The ministry is the combination of electricity and energy. The electricity sector suffers losses every year until 2018-19 FY. The government has to incur the losses of the electricity sector.”

"As a matter of fact, the energy sector alone generates the profits. Take a look at the profit and loss of the energy sector, the sector is expected to earn Ks 703 billion or around 96 per cent of the total profit, in 2019-2020 FY. After the hike in electricity bill on July 1, the people become aware of the fact that they should conserve energy more. In addition, the budgeted electricity bills for the departments including the central organizations and the Union Ministries were reduced by Ks 30.305 billion for 2019-2020 FY,” he added.

It is found that the government ministries calculated the increased budgets for electricity as the Joint Bill Committee designated the increased electricity bills under the National Planning Bill for 2019-2020 FY. The budgeted electricity bills are very high even though it should be two or threefold-increase. The committee suggested that the same rates should be fixed.