EVN to raise power prices by 5 percent

The Ministry of Industry and Trade has green-lighted the Electricity of Vietnam Group’s proposal to raise power prices by 5% as of tomorrow, December 20.

Accordingly, the average power price will be VND1,304 (US$0.06)/kWh, excluding value-added tax. This is an increase of VND62 per kWh compared to the current rate.

The power price of the first (0 – 50 kWh) and second (0 – 100 kWh) levels of the price scale where most poor households fall into will remain unchanged.

EVN said it needed to increase prices to reflect real production costs as well as cover the unexpected expenses of buying power from oil-fueled power plants last year since its hydropower plants had to cease production because of droughts.

There were also other expenses that had been not included in the old power price calculation, EVN said.

Earlier in a press briefing, Deputy Minister of Industry and Trade said the power price increase was inevitable since power had been sold at prices which were even lower than costs.

He said EVN also needed to adjust its prices to partly cover losses caused by buying oil for production and foreign exchange differences.

This is EVN’s second price increase so far this year.

Earlier in March, it increased prices by 15.28%.

Source: http://www.qdnd.vn/qdndsite/en-US/75/72/182/156/190/170473/Default.aspx

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