Civil Electricity Price List Amended down

An interdisciplinary mission has completed a new price list for civil electricity consumption with lower increase levels. The new price list is developed on the Scheme 3. According to Mr. Nguyen Minh Phong, Director of the Socio-economic Division under the Hanoi Socio-economic Institute, households will be financially affected by this scheme, which proposes not raising industrial electricity price at normal hours and idle hours.

In detail, the price for each kWh of the first 100 kWh consumed by a household in a month will be lowered to VND620 from the previously proposed VND630. The increase rate for power consumption between 101 kWh and 399 kWh is also lessened to 15-21 per cent from previously proposed 16-22 per cent. If the power consumption exceeded the 400 kWh/month limit, the price will be VND1,780/kWh. The increase rate of power for service and non-profit administrative offices is up from 11 per cent to 12 per cent. The ceiling price for civil electricity in rural areas is VND700/kWh.

 

Power retail prices for specific users such as clean water production, pumping, steel refinery, urea fertiliser production, and phosphate production will be amended in 2008.

 

According to the Ministry of Industry, the price rise roadmap will be conducted until 2010 under three steps. The first step will be implemented from July 1, 2006 with an increase of 8.8 per cent compared with the current price (or averagely to VND852/kWh). The second step will begin from July 1, 2008 with an increase of 4.5 per cent compared with the first step (or averagely to VND890/kWh). The third step will be carried out in 2010 but no rise rate is available.

 

With this roadmap, the profit collected in the 2006-2010 period will compensate the investment of nearly VND15,000 billion (US$937.5 million).

 

The reason for the quick implementation of the power price rise plan is to help EVN to mobilise capital to keep timely construction pace of power projects to meet the national economic development demands, according to the Ministry of Industry.

 

The Ministry of Finance will appraise the price list and the interdisciplinary mission will complete the final price rise plan to submit the Prime Minister for approval and implementation from July 1.