Industry, Trade Ministry Submits Power Price Hike Plan in Q1 to Gov't

The Ministry of Industry and Trade (MoIT) has recently submitted a plan to raise electricity price by between 8.3 per cent and 9 per cent in the first quarter of this year to the government for approval, MoIT's Deputy Minister Bui Xuan Khu said.

 

The price hike is aimed at easing power shortages that often occur in Vietnam during dry seasons, Khu attributed.

 

The suggested plan has taken into account current socioeconomic conditions, including input material prices, consumer price index (CPI) and economic growth rate, as well as withstanding of businesses.

 

Vietnam last raised retail electricity prices by 7.6 per cent in January 2007 to an average of VND 862 (US$5 cents) per kWh.

 

The government will carefully consider the MoIT's plan before coming to a final decision as electricity is important and sensitive goods, the Ministry of Finance said.

 

Earlier, the state-owned Electricity of Vietnam Group (EVN) proposed hiking power price by between 17 per cent and 20 per cent in 2009.

 

Under an electricity price roadmap approved by the Vietnamese Government from January 1, 2007, average retail power prices rose by 7.6 per cent to VND842 (5-6 cents) per kWh and will again be up by 4.5 per cent to VND890 (5.56 U.S. cents) per kWh from 2008. (Local sources)