Vietnam Abolishes Dual Power Prices from Jan 1, 2005

Vietnam Abolishes Dual Power Prices from Jan 1, 2005

Foreign invested enterprises and foreigners operating and living in Vietnam are subject to the same electricity price as domestic enterprises and residents from January 1, 2005, according to the Decision No.215/2004/QD-TTg dated December 29, 2004 by the Prime Minister Phan Van Khai.

According to the decision, the prices of electricity will remain the same for industrial production bases and service providers, and will be increased for daily consumption of households.

The clients consuming less than 300 kWh per month shall be subject to an electricity price of VND550 per kWh for the first 100 kWh, and VND900 for the following 50 kWh, VND1,210 for the next 50 kWh and VND1,340 for the last 100 kWh.

The clients consuming over 300 kWh per month shall pay a price of VND1,100 per kWh for the first 200 kWh, VND1,340 for the following 100 kWh, then VND1,400 for the next 100 kWh and VND1,500 for the subsequence kWh.

To reduce electricity consumption at peak hours, the price of electricity has been set at VND1,950 per kWh and at VND750 at off-peak hours for daily consumption of households. Businesses will have a price of VND2,110 at peak hours and VND690 at off-peak hours

Vietnam reported total electricity output of 46.05 billion kWh in 2004, up 13.1 per cent against 2003. Of the total output, State-owned power plants made up 86.9 per cent.

• B.T