(KPL) During the 9th Ordinary Session of the 9th National Assembly held on June 10, 2025, Minister of Industry and Commerce Malaythong Kommasith addressed pressing concerns raised by Assembly members regarding the recent increase in electricity prices. The hike has drawn public attention for its impact on citizens' living conditions, civil servants, soldiers, police, and entrepreneurs, as well as its influence on agricultural production, business operations, and the reliability of electricity supply.

Minister Malaythong explained that the primary reason behind the proposed increase in electricity prices is the ongoing imbalance between the cost of electricity production and the rates at which it is sold. For years, electricity has been priced below production costs, leading to a significant accumulation of debt by Électricité du Laos (EDL)—including both principal and interest.

These debts have largely resulted from investments in critical infrastructure projects related to electricity production, distribution, maintenance, and operations. Without adjusting prices, EDL’s financial strain continues to deepen, threatening long-term energy stability.

Concerns over unstable power supply—including frequent outages, short circuits, transformer explosions, and resulting damage to household appliances and production lines—have also been raised by Assembly members. Minister Malaythong assured the public that the government, in coordination with relevant sectors, is urgently working to resolve these technical issues to ensure a stable and sufficient electricity supply.

To cushion the impact of the price increase, the Ministry of Industry and Commerce is expediting studies to assess its effects on households and businesses. The Ministry plans to propose additional mitigation measures to the government, targeting vulnerable groups such as civil servants, low-income earners, military personnel, and police officers. Policy adjustments will also aim to support the production of essential food and goods to stabilize livelihoods.

The government is pursuing a multi-pronged strategy to ensure sustainable energy management. Key initiatives include:

Renegotiating power purchase agreements between producers and EDL for better long-term terms.

Improving management transparency and operational efficiency, while reducing unnecessary spending and minimizing technical losses.

Accelerating revenue-generating investment projects and boosting strategic partnerships.

Revising policies and legal frameworks to encourage domestic alternative energy production.

Improving energy supply management to eliminate inefficiencies such as over-purchasing and underutilization.

Proposing strategic rights for EDL or Lao Holding State Enterprise to develop coal-fired power projects for domestic consumption.

Exploring international financial assistance through debt restructuring and negotiations with new funding institutions.

Finally, Minister Malaythong emphasized the need to revisit and update the Lao PDR Electricity Development Strategy to 2030, originally approved in 2021. The updated strategy will reflect the current economic context and emerging global trends to ensure that the country's energy planning remains robust, adaptable, and forward-looking.

KPL