EVN Seeks to Increase Electricity Charges in 2005

EVN Seeks to Increase Electricity Charges in 2005

Electricity of Vietnam (EVN) has proposed the government increase electricity prices in 2005 if its input costs increase 1 per cent, said Dao Van Hung, EVN general director.

The rise in domestic coal prices will push up the electricity industry’s input costs by more VND200 billion (US$12.74 million) while its revenues will decrease by nearly VND400 billion (US$25.48 million) in 2005.

If EVN does not increase electricity prices, the corporation and its 32 power plants will not balance their investment capital, Hung said.

According to Decision No.215/2004/QD-TTg dated December 29, 2004 by the Prime Minister Phan Van Khai, the price of electricity will remain the same for industrial production bases and service providers, and will be increased for daily consumption of households.

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.
(Liberated Saigon)