Power Prices to Be Market-regulated from June

3:36:32 PM | 4/19/2011

Under a decision issued by Prime Minister Nguyen Tan Dung on April 15, power prices will be adjusted based on market conditions from June 1.

Accordingly, power prices will be adjusted when input cost parameters change to a certain extent compared with those based on which current power prices are calculated. The decision regulates that the minimum interval between two consecutive adjustments shall be three months.

Specifically, when input cost factors, such as fuel prices or foreign exchange rates, change and cause electricity production cost to drop by 5 percent or more, the Electricity of Vietnam Group (EVN) will lower power prices at the same rates.

On contrary, when input factors change and cause electricity production cost to increase by 5 percent, EVN will raise power prices at the same rate, subject to approval from the Ministry of Industry and Trade.

In case input cost factors change and cause electricity production cost to increase by over 5 percent, EVN must report the situation to the Ministry of Industry and Trade and refer its plan to raise power prices to the Finance Ministry for consideration before submitting it to the Government for approval.

The Prime Minister also asked the Ministries of Finance, and Industry and Trade to set up a power price stabilization fund based on the annual audit results of EVN.

(TT)