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Energy Subsidy Reform: An International Comparative Perspective on Myanmar

Authors:
  • ASEAN Centre for Energy

Abstract

The report starts by presenting the numerous arguments for reducing energy subsidies, both at a general level and for Myanmar in particular. After identifying electricity pricing as the main area for potential energy subsidy reform in Myanmar, and the reasons for such reform. It then examines the experiences of other countries, drawing on a newly compiled dataset of past efforts at reforming energy subsidies, the largest such dataset ever gathered. Particular attention is paid to the experiences of other ASEAN countries. From this review of the experiences of other countries, proposals are made for how Myanmar might proceed with reforming its own electricity prices. Recommendations include a proactive communication strategy, strengthening key government institutions and the division of powers in electricity pricing, improving the production and availability of data on electricity generation costs and pricing and ensuring that key groups benefit from the revenue generated by higher electricity prices. The report argues that, despite some challenges, Myanmar is well positioned to carry out electricity subsidy reform.
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