Arya News - On social media, many Lao citizens have shared photos of their monthly electricity bills, expressing shock at how much the costs have risen.
BANGKOK – The sharp price increases are raising concerns over the country’s long-held ambition to become the “Battery of Southeast Asia.”
On social media, many Lao citizens have shared photos of their monthly electricity bills, expressing shock at how much the costs have risen. In one widely shared post, a user reported a nearly 50% spike in their April bill, which reached 2.7 million kip, equivalent to around $125 or 4,060 baht.
In February, the Vientiane government announced a gradual hike in electricity rates through to 2029. The plan includes incremental increases in 2025 and 2026, with household rates projected to hit 1,724 kip per kilowatt-hour — approximately 2.6 baht — by December 2026. That would nearly double the rate from January this year.
The rate hike comes as electricity consumption in Laos climbs, spurred by rising ownership of air conditioners and home appliances, as well as a more active business sector. By the end of 2024, Laos recorded around 21,300 registered companies — the highest in a decade.
Laos generates about 70% of its electricity from hydropower, and much of the infrastructure has been financed through foreign loans. But as the kip continues to depreciate, the cost of servicing that debt has ballooned, prompting the government to pass the burden onto consumers.
The kip has weakened by more than 10% year-on-year, falling to 660 per Thai baht as of Wednesday, compared to under 580 baht per kip in late May last year.