Sunday, July 23, 2017

Power supply entity approved

The Pyidaungsu Hluttaw yesterday backed corporatisation of power supply boards in Yangon and Mandalay, in a shake-up aimed at reducing running costs and the national budget deficit.

MPs voted to approve the motion submitted by the president to form the Yangon Electricity Supply Corporation and the Mandalay Electricity Supply Corporation, which will be independent, publicly owned firms.

YESC will be based on the Yangon Electricity Supply Board, which generates about 1000 megawatts of electricity in Yangon Region, according to U Maung Toe, secretary of the Public Accounts Joint Committee.

He said that about 20 to 25 percent of that output is wasted but conversion to an independent entity would enable it to attract the considerable investment needed to reduce wastage and improve its service to customers.

U Tin Maung Oo, MP for Shwe Pyi Thar township, Yangon Region, said the change in status of the board could help it meet local electricity demand and thus support economic growth.

U Aye Mauk, MP for Mahlaing township, Mandalay Region, said the ministry should cut spending and trim the workforce.

Daw Myint Myint San, representing Wakema township, Aye-yarwady Region, said the new entity should practise fairness in forming its governing board and recruiting staff.

Yangon Electricity Supply Corporation will cover the entire Yangon Region. Similarly, Mandalay Electricity Supply Corporation will cover the entire Mandalay Region, apart from the Nay Pyi Taw Council area.

Minister for Electric Power U Khin Maung Soe said YESB had been self-financing from 2006 until 2010, but relied on the Union budget since 2011. The new entity’s employees would receive pay and allowances equal to those of the civil service, but would also receive other incentives depending on profit, he said.

Minister for Finance U Win Shein said the two power supply bodies were among the first to undergo the change from state-owned to commercial entities in an effort to reduce the Union budget deficit. The two corporations would run independently starting from this month, he added.

Translation by Zar Zar Soe