June 30, 2025
VIENTIANE – The government has ordered urgent action to explore measures to mitigate the impacts of the recent restructuring of electricity prices, which has seen bills rise to unprecedented levels.
The cabinet issued the instruction at its monthly meeting for June, which ended on Wednesday.
It came shortly after National Assembly (NA) members called for the government to rethink the price hike. Lawmakers expressed concern that higher energy bills could seriously impact both households and businesses, which are already burdened by high inflation.
Chaired by Prime Minister Sonexay Siphandone, the meeting instructed the relevant sectors to compile a list of categories identifying affected groups suffering varying degrees of impact, government spokesperson Sonexay Sitphaxay told local media.
The findings will help the government figure out appropriate measures to mitigate the impacts.
Addressing the National Assembly’s ongoing 9th Ordinary Session, which ended on Thursday, the government said the energy price adjustment was made to better reflect the operating costs of Electricite du Laos (EDL).
The state enterprise said previously that large-scale investment in the expansion of the power grid to more households in remote communities, where the provision of services is not commercially profitable, was one of the main reasons for the huge debt amassed over recent years.
However, NA members said that although the energy price increase could boost EDL’s revenue, it could also result in an economic backlash.
“Instead of boosting revenue, this policy could force companies to cut their operations or close altogether,” NA member for Savannakhet province, Mr Xayadeth Phuiyavong, said during a debate on the issue.
“The study and adjustment of the electricity pricing structure must align with the living conditions of the people, agricultural production, and small-to-medium-sized industries,” the NA said in a resolution adopted by its members.
It added that the price adjustment should also align with the EDL’s ongoing reform to improve the operation of the state enterprise after years of sustained losses.
The meeting also outlined other urgent tasks, calling for state bodies to be more proactive in executing adopted measures designated to address financial and economic hardship and strive to achieve this year’s socio-economic targets.
To this end, the cabinet ordered that the ongoing re-allocation and re-assignment of personnel in state bodies following a reduction in the number of ministries from 17 to 13 be completed by the end of next month.
Similar civil servant arrangements in local departments will take place at a later date.
The government is also working to provide aid relief for victims of natural disasters after tropical storms lashed several provinces, affecting households and damaging infrastructure.
The ministries concerned were told to work out a long-term recovery plan, with a particular focus on repairs to damaged roads and the management of water levels in reservoirs at hydropower plants.