By B.Bayarjavkhlan
We invited and interviewed M. Enkhtsetseg, Member of Parliament, head of the Parliamentary Working Group tasked with drafting amendments to the Energy Law, Renewable Energy Law, Energy Conservation Law, and related legislation.
Reforming an Outdated System
-At what stage is the revision of the energy legislation? Has the draft law been completed?
-Everyone knows that the energy sector faces many challenges. To address them, we first need to reform the legal framework, which is why we are now revising the Energy Law.
Today, the sector struggles to attract investment, stakeholders face ongoing difficulties, and consumers’ rights are often left unprotected. The root cause of these issues lies in the outdated legal environment. The current law was enacted in 2001—24 years ago—and no longer reflects the realities of today’s energy market.
Moreover, the law is very general and brief, leaving the sector to be governed by more than 800 separate regulations. Regulations are considered secondary and unstable compared to laws, which serve as the primary framework. Many of these regulations even contradict existing laws or restrict rights.
This instability is why we embarked on a comprehensive reform effort. Our working group studied international experiences, including how other countries structure their electricity laws, company relationships, and market models. We paid close attention to both their successes and mistakes because we must not repeat them.
Countries with climates similar to ours but with reliable heat and power supply systems typically have separate laws for electricity and heating. This ensures full regulatory coverage and a stable, law-based system rather than one dependent on ad hoc regulations. That’s the direction we believe Mongolia must move toward.
On Liberalizing the Energy Market
-Many argue that Mongolia should liberalize the energy sector and move toward a competitive market. How is this reflected in your draft law?
-The draft Electricity Supply Law envisions a gradual transition toward a competitive market. However, liberalization does not necessarily mean privatization.
It’s true that state-owned enterprises often suffer from weak governance, but instead of full privatization, we can improve performance by allowing partial public or private participation—such as through joint or public companies. This will enhance governance without losing public ownership.
We have reflected this approach in the draft law, making space for public-private partnerships within a clear legal framework.
-You’ve been working on these drafts even during the parliamentary recess, correct?
-Yes, our team continued working nonstop during the recess. We aimed to finalize the draft of the Electricity Supply Law and came very close. We expect it to be fully ready by early November.
Protecting Consumers in the Heating Sector
-You’re also drafting the Heating Supply Law. How will it protect citizens’ interests? For instance, apartment residents currently pay based on square meters, even though they can’t control their heat usage.
-Our goal is to minimize unnecessary government interference in the heating sector. The current law focuses mainly on electricity, leaving heating largely unregulated.
Therefore, it’s essential to modernize the Energy Law so that it comprehensively covers today’s diverse and evolving relationships within the sector. This new framework will create a legal environment capable of solving many of our long-standing issues.
One of our biggest achievements is developing Mongolia’s first-ever Heating Supply Law. We’ve held eight public discussions, reached out to 159 companies, and received over 800 proposals from 47 organizations. These have been incorporated into the latest draft, which we plan to submit during the autumn parliamentary session.
Under the new law, we classify heating systems into three categories:
1. Centralized heating systems – supplied by major thermal plants like Thermal Power Plant-3 and Thermal Power Plant-4.
2. Semi-centralized systems – for areas that cannot connect to the main grid.
3. Independent systems – where individuals or enterprises build their own heat sources.
The government should not interfere in independent systems. Currently, private entities face numerous bureaucratic hurdles—feasibility studies, design approvals, special permits, tariff approvals—which discourage investment. The new law removes these barriers and encourages private participation, enabling private companies to supply heat where the government cannot.
Today, residents pay for heating based on apartment size, regardless of actual consumption. For example, even if someone leaves for winter vacation abroad, they still pay the same amount. Without meters, consumers cannot monitor or control usage. The new law will require heat meters so consumers can measure and manage their consumption.
We’re also simplifying connection procedures, which will improve overall planning and efficiency in the heating sector.
Energy Security and Local Accountability
-What changes are being made regarding local involvement and planning?
-Local authorities must ensure that their citizens receive stable and reliable heating. Unfortunately, that responsibility hasn’t been properly fulfilled in practice. The new law will increase local participation and accountability in energy management, which will improve planning and service reliability.
On the Role of a Parliamentarian
– You’ve served as a Member of Parliament for some time now. What have you learned from this work?
I’ve learned that a Member of Parliament must focus on their core legal duties—drafting, amending, and overseeing laws. That’s where our attention should be.
When MPs take on roles beyond their mandate—acting like journalists, police officers, or administrators—it creates confusion and disorder. Similarly, the Government should focus strictly on its legal responsibilities. When everyone stays within their proper role, the system functions far more effectively.
“We can only strengthen the energy sector by building a modern, fair, and predictable legal framework. That’s the foundation for attracting investment, protecting consumers, and ensuring reliable power and heat for all.”
M.Enkhtsetseg
Эх сурвалж: “Зууны мэдээ” сонин
2025 ОНЫ АРАВДУГААР САРЫН 17. БААСАН ГАРАГ. № 196 (7693)
