Vietnam to Pay Additional VND6.4 Tln for Electricity This Year

Vietnam is estimated to pay an additional VND6.4 trillion (US$376.47 million) for electricity during this year due to the government's decision to raise domestic average retail power price by 8.92 per cent from VND860/kWh to VND948.5/kWh from next month, Do Huu Hao, Deputy Minister of Industry and Trade said at a meeting on power price hike took place on February 17 in Hanoi.

 

Of the total additional expenditure for power during this year, production and business sectors will be charged VND2.3 trillion (US$135.29 million) with power price hike of between 6 per cent and 7.5 per cent; administrative offices VND300 billion (US$17.64 million) with 10 per cent; and trading & service sectors and households the remaining with 13 per cent.

 

Vietnam will adjust market-based electricity prices in 2009 and the following years.

 

According to the master plan for the national electricity market development over the next 20 years approved by the government in Feb 2006, the market will develop in three phases. A competitive power generation market is slated to be developed in the 2005-2014 period.

 

Between 2015 and 2022, the market will operate under the wholesale business model. The last phase will feature a competitive retail market after 2022, with a pilot period from 2022 to 2024 and a fully-constituted competitive retail market be applied across the country after 2024. (Local sources)