In Mongolia, the energy sector has emerged as a key driver of development and a focal point of public attention. The newly formed coalition government of Mongolia reaffirmed its commitment to the energy sector as a national development priority by supporting energy reform. A key step taken under this initiative was the restructuring of electricity tariffs—which had been financially unsustainable for years—by increasing prices by approximately 30 percent and introducing a new three-tiered pricing structure. While this reform is expected to enhance operational efficiency and investment in the energy sector, it also carries the risk of imposing a disproportionate burden on low-income and vulnerable households.