The Electricity Group of Vietnam (EVN) has announced that
it will raise power prices by 5 per cent from tomorrow (December 20).
Average power prices will
increase to VND1,304 ($0.06)/kWh, up VND62 per kWh, following approval by the
Ministry of Industry and Trade.
However, the price will still
be kept unchanged at VND993 per kWh for the first 0-50kWh for poor households
and 0-100kWh for other households.
According to EVN, the power
price hikes were necessary to cover unexpected costs due to purchasing power
from oil-fuelled power plants last year because the power company’s own hydropower
plants had ceased production because of droughts.
The higher electricity prices
will also help attract more investors into the power sector, encouraging people
to save and use electricity more efficiently, EVN added.
Minister of Finance Vuong Dinh
Hue recently said the Government was considering whether the price of
electricity should be changed one time for the entire year, or if it should be
adjusted every quarter, noting that the impact of any price change would be
taken into account.
The minister emphasised that
such price adjustments are unavoidable as the state cannot subsidise the power
sector forever.
In March this year, EVN raised
power prices by 15.28 per cent.
dtinews
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