Peak and valley electricity charges in laos

Why did electricity prices increase in Laos in 2021?

According to the data, the average price of electricity in Laos increased by about 1.5% annually from 2013 to 2018 before seeing a 3% drop in 2019 due to a price-restructuring policy designed to lower electricity rates for households that consume less than 150kWh a month, which EDL classifies as poor families. In 2021, EDL raised prices by 2%.

How much does electricity cost in Laos?

According to data from the World Bank, the electricity rate for business purposes in Laos is 13.2 US cents per one kWh. This price is marginally cheaper than in Thailand, where it is 13.7 US cents per one kWh. Electricity for business purposes in Vietnam costs just 12.5 US cents per one kWh.

Why are electricity prices higher in Thailand than in Laos?

"The production cost of electricity in Thailand is probably higher than in Laos because of the contribution of oil and gas generation,” said a senior official at the Energy Policy and Planning Department, Ministry of Energy and Mines, adding that EDL has been negotiating with EGAT to make sure that the export and import price is about the same.

Do Laos deserve lower electricity prices?

Many Lao people feel they deserve lower prices because the country has built dozens of electricity-generating plants over the years. EDL officials, however, maintain that electricity is already cheap and that people should use it more economically.

Is Laos a battery of ASEAN?

Although Laos has 94 electricity generating plants (2019 data), most of them are dedicated to exporting energy in line with the country’s policy to become the battery of Asean. In 2019, Laos had a total installed electricity capacity of about 9,000 MW, enough to light up nearly all of New York City.

Should electricity tarifs be raised in the Lao PDR?

Raising electricity tariffs in the Lao PDR is seen as a drawback if it deters investment in new industries. There may be a greater aspiration to sell exports (and increase domestic demand) than there is demand for exports.