EVN Proposes Power Price Hike

The Electricity of Vietnam Group (EVN) has sent a document to the Ministry of Industry and Trade, requesting a hike in selling electricity prices by 10 - 13 percent. The State-owned group proposed three plans for electricity price rise, with the highest hike at 13 percent and lowest at 10 percent. If the proposal is approved, the increase may take effect next month.

 

According to the current ruling, an adjustment to power price is based on three input factors, namely material price, foreign exchange rate, and changes in generated power structure in three straight months. If the change is below 5 percent, the group will self-increase and need to report to the Ministry of Industry and Trade.

 

EVN is now incurring an alarming debt level and it has no other source of income than power price. The Ministry of Finance has agreed to allow EVN to account costs and losses from electricity production and business into electricity prices. If the group is permitted to change 5 percent in prices in every three months, it will not be able to escape loss before 2013.