Revision of Electricity Tariffs

          The Energy Regulatory Commission of Mongolia has decided to adjust consumer tariffs for electricity from November 15, 2024, and for heat from May 16, 2025, bringing them to cost-reflective levels. The new tariffs will be applied as follows:

• The average electricity tariff increases from 216 MNT/kWh to 280 MNT/kWh, reaching the actual cost of supply.
• As part of the tariff reform, measures were introduced to encourage households to monitor and save electricity consumption while minimizing the financial burden on consumers.
• A three-tier consumption-based tariff system has been introduced. Previously, the average household tariff was 140 MNT/kWh. Under the new system, households will be charged as follows:
• 175 MNT/kWh for the first 150 kWh per month,
• 256 MNT/kWh for consumption between 150–300 kWh,
• 285 MNT/kWh for consumption exceeding 300 kWh.

           In other words, households that use electricity efficiently and within reasonable limits will pay a lower price per kWh, while higher consumption will result in higher rates. As a result, household tariffs will vary by 35–131 MNT/kWh depending on usage.

According to national statistics, among Mongolia’s 788,000 household consumers:

• 45% consume up to 150 kWh/month,
• 40% consume 150–300 kWh/month,
• 15% consume more than 300 kWh/month.

Additional measures:

• A new “peak load time tariff” will be introduced, in addition to the existing daytime and nighttime tariffs. Households that opt into the three-part time-of-use tariff will continue to benefit from unchanged nighttime rates.
• The nighttime electricity discount for heating in ger-area households during the heating season will remain in effect.
• Tariffs for socially vulnerable households requiring welfare support will remain unchanged.
• For businesses and organizations, the electricity tariff will increase by an average of 30%.

         Currently, the average monthly household electricity consumption nationwide is 220 kWh. A typical monthly bill of 36,220 MNT will increase by 15,887 MNT, reaching 52,107 MNT under the new tariff.

       It is noteworthy that household electricity and heating tariffs had remained unchanged since 2019, maintaining stability for five years.

         By implementing this tariff reform and aligning prices with market principles, Mongolia’s energy sector financial and economic sustainability will be strengthened.