VIENTIANE (Laotian Times): The Lao government has announced plans to renegotiate electricity purchasing agreements with hydropower companies in response to growing public anger over rising power bills.
This decision comes after widespread backlash following the introduction of a new tiered electricity pricing system set to take effect from 2025 to 2029.
The revised pricing, introduced by Electricité du Laos (EDL) in February, significantly raised electricity costs for all households.
Even low-use households have seen their monthly bills nearly double in recent months. For instance, a household using 25 kilowatt-hours would pay approximately LAK 8,900 in January this year. By July, that cost had doubled, with further increases expected by the end of the year.
High-usage households have been hit even harder. A household using 1,600 kilowatt-hours now faces a monthly bill of nearly LAK 2.5 million, a figure that could rise to over LAK 3.5 million by 2029 if no changes are implemented.
The Lao electricity company said the higher rates are needed to fund expansion of the service’s access to remote areas, where construction and service costs are high but commercial returns are low.
According to EDL, these investments have contributed to the utility’s growing debt, prompting a shift in pricing strategy.
The issue became a major topic at a recent government cabinet meeting with provincial governors, held in mid-July.
Government spokesperson Sonexay Sithphaxay reaffirmed the administration’s commitment to reviewing the tariff policy and easing the burden on consumers.
The cabinet has now endorsed a plan to reopen talks with hydropower developers in the second half of 2025.
Officials hope to secure more affordable electricity rates that reflect both the country’s economic realities and public concerns. - Laotian Times
