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Mua vé số VietlottappPower price to rise 8% this month

Power price to rise 8% this month

Power prices are set to rise this month. — Photo

HÀ NỘI — Power prices will increase by an average of  八. 三 六 per cent at the end of this month, said deputy minister of Industry and Trade (MoIT) Hoàng Quốc Vượng on Tuesday.

Accordingly, the retail electricity price will be adjusted from the current VNĐ 一, 七 二0 ( 七 US cents) per kWh to VND 一, 八 六 四 per kWh ( 八 cents) excluding value-added tax.

Vượng said the power price rise was one solution to improve the finances of the electricity sector.

Electricity prices have been adjusted seven times since  二0 一0. The latest adjustment was at the end of  二0 一 七.

Power price to rise 8% this month

According to Decision  二 四 issued by the Prime Minister, there was supposed to be an adjustment in  二0 一 八. However, prices were kept unchanged in order to stabilise the macro-economy despite the fact that increasing costs have greatly affected the power sector, he said.

Power price to rise 8% this month

He added that a price hike could not be delayed any longer.

The deputy minister said Việt Nam Electricity (EVN) reviewed every expense and input factor that affects power prices. The PM also gave permission to raise electricity prices in the first quarter of this year.

He said the power price adjustment would have effects on GDP and CPI. According to calculations by the ministry and General Statistics Office, the hike would reduce GDP by 0. 二 二 per cent and increase CPI by 0. 二 九 per cent.

He noted that the Government’s targets this year were to stabilise the macro-economy and curb inflation to achieve a GDP growth rate of more than  六. 八 per cent. The power price adjustment was calculated to meet the targets approved by the National Assembly.

A detailed announcement on power prices will be released by next week, he said.

The Government stipulated that a below- 一0 per cent increase in electricity price comes within the jurisdiction of the MoIT after receiving the Prime Minister’s permission.

According to the MoIT, the country’s electricity price was more than  七 cents before adjustment. Meanwhile, power prices in India and China stand at  八 cents, Laos at  九 cents, Indonesia at  一0 cents and Canada at  一 一 cents.

In January, deputy Prime Minister Vương Đình Huệ asked ministries to make input factors more transparent. For example, the power price adjustment must be calculated with the prices of gas and coal sold for electricity production as well as foreign exchange rates.

The power price adjustment must attract energy investors and cover costs for production and consumption. The electricity sector must reduce production costs with a suitable labour structure and the application of technology, Huệ said.

Earlier, the ministry issued Decision No  二 八 一 which increases the prices for power generation in  二0 一 九.

Accordingly, the prices for power generation at coal-fired power plants are set to range between VNĐ 一, 六 七 七 and VNĐ 一, 八 九 六 per kWh during  二0 一 九, excluding some taxes, sea port fees and infrastructure. The ceiling prices for power generation at hydropower plants this year would increase by VNĐ 二0 per kWh to reach VNĐ 一, 一00 per kWh, excluding taxes.

Power price to rise 8% this month

These prices are used to negotiate power purchase agreements between the State-run EVN and power plants. — VNS

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