On June 25 this year, the Ministry of Electricity and Energy announced it would increase the power bill from July 1, without first seeking public opinions and making discussions at parliament. The Weekly Eleven picks the power bill hike as the significant one for the year 2019.

The new system retains Ks 35 as the lowest band for households, but it applies only to the first 30 units. Users will pay Ks 50 per unit from 31 to 50 units, Ks 70 per unit from 51 to 75 units, Ks 90 per unit from 76 to 100 units, Ks110 per unit from 101 to 150 units, Ks 120 per unit from 151 to 200 units and Ks125 per unit for all consumption above 200 units.

For the businesses, 1 Unit to 500 Units cost Ks 125, 501 Units to 5,000 Units, Ks.135, 5,001 Units to 10,000 Units, Ks.145, 10,001 Units to 20,000 Units, Ks.155, 20,001 Units to 50,000 Units costs Ks. 165, 50,001 Units to 100,000 Units costs Ks. 175 and above 100,000 Units, Ks 180.

Entrepreneurs estimated that the commodity prices are likely to increase in the next six months.  As they expected, the average inflation rate increased from 5.2 per cent to 8.1 per cent within nine months. Foodstuff prices also increased. Due to the power bill hike, the living costs increase by between two and over 30 per cent. The hike in power bills also increases production costs. 

The ministry’s revenues from the collection of electricity bills increased from Ks1,388 billion in 2018-19 FY to Ks3,112 billion in 2019-2020 FY. 

Myanmar has achieved 50 percent of nationwide electrification in December and set a goal of electrifying the whole country by 2030.