SIX months after the government raised electri-city charges, small and medium-size businesses in Yangon say they have weathered the price hike well and that the higher costs are easier to cope with than erratic supplies.

In May, the government doubled electricity prices for businesses, from K25 to K50 per unit, and raised the price for private households tenfold, from K2.5 to K25 per unit.

“The current rate is not a problem for me so long as the power supply is regular,” said U Aung Pwint, who has owned a bakery in South Okkalapa township, Yangon, for the past five years.

“My monthly electricity bill is about K40,000 to K50,000 at the current rate. But if supplies stop I have to use a generator, and that amount would pay for about 10 gallons of diesel, which only lasts a couple of days in the generator,” he said.

Power supplies in Yangon have been much improved since early in the rainy season, largely due to higher lake levels at the country’s hydropower plants. Later-than-usual rains this year are also expected to keep electricity flowing in the city nearly 24 hours a day through December.

U Maw Oo, managing director of Aung Oo Maw Souvenir Jade Products and Sales Cooperative Ltd, said steady electricity supplies had benefited his business, which in previous years had been forced to close for periods due to blackouts.

“The adjusted higher rate doesn’t affect my business so long as we get regular electricity supplies,” he said.

Other businesses, like Myanmar Gem Lab, have coped with the price increase by passing the cost on to customers.

However, Myanmar Gem Lab owner U Tin Myint Oo said further price increases may cause problems for the gem cutting and polishing company.

Bakery owner U Aung Pwint, however, pointed out that higher electricity costs were not the sole cause of for many products’ price increases in recent months, with supply issues and exchange rates also playing roles in retail prices.

To prepare for the chance of more frequent power cuts, U Aung Pwint said he was planning to buy an additional diesel-powered generator to keep his bakery open and ensure his customers keep returning for more.