Electricity of Vietnam (EVN) is going to seek
the Government’s approval for two more power price hikes from now to the year’s
end with the increase level of 5% each, said deputy general director Nguyen Tan
Loc of the state utility.
Last
Friday, Loc said the industrial manufacturing sectors are consuming as much as
47% of the total power output, especially steel and cement. Meanwhile, the
prices of power sold to steel and cement production are currently lower than
the average electricity prices by some 160-195 dong a kilowatt.
EVN has
been allowed to delay its debt payment to Vietnam Oil and Gas Group (PVN) and
Vietnam Coal and Mineral Industries Group (Vinacomin) worth trillions of dong
until the next price hike.
Speaking
at the review conference, Loc recommended the Government to revise up the power
tariff to match the cost, but price support for poverty-stricken and low-income
households will remain intact.
He also
proposed the Government direct enterprises to innovate their production
technology and equipment, especially with the power-consuming industries like
steel, cement and chemicals, as well as prohibit imports of low-performing
manufacturing equipments that consume a lot of electricity.
Another
concern of the power sector is that after the recent gas price hike, consumers
are switching to using electric cookers, putting more pressure on power
generation.
Deputy
Minister of Industry and Trade Hoang Quoc Vuong told that the Government has
laid down as a policy that power, coal and fuel prices will be adjusted in
accordance with the market prices in the coming time. The increase level and
time will be considered thoroughly so as to improve the financial situation of
the power sector as well as ensure macro-economic stability and tackle
inflation.
“The
power industry is reassessing all the input costs to determine how much the
market prices have fluctuated, but there is no specific figure at present. We
should keep in mind that the power sector still owes hefty debts in the two
years 2010 and 2011, so if conditions allow in the coming time, power price
hike should be approved to improve the financial situation of the industry,”
Vuong said.
Saigon
Times
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