>> Higher power price proposed for well-to-do people

>> EVN reiterates power price hike proposal

The Ministry of Industry and Trade mistakenly allowed state-owned Electricity of Vietnam Group (EVN) to raise power prices in 2010 higher than the Government’s approved rate, an investigative agency reported.

The MoIT allowed EVN to apply higher power price rises than the Government’s approved rate

According to the Ministry of Finance’s investigative agency, the Government on February 12, 2010 issued an official dispatch to allow a power price hike of 6.8% against the average rate of 2009.

This dispatch would have allowed power prices for 2010 to be increased to only VND1,036 (nearly five US cents) per kWh.

However, on February 24, 2010, the Ministry of Industry and Trade (MoIT) issued a circular to allow an average power retail price of VND1,058 (over five US cents) for 2010. The figure equalled a power price hike of 9%, instead of the Government’s approved 6.8%, the agency noted.

Non-core business

EVN has invested in a range of non-core business projects. As of June 30 this year, it has pumped a combined VND44.584 trillion (USD2.12 billion) into 30 subsidiaries.

The investigative agency found that EVN’s investment in non-core businesses such as securities, insurance and banking has surpassed the Government’s approved rate of 30% maximum.

Recently, EVN again proposed that the Ministry of Industry and Trade approve a power price hike of 10-13% from November.

In early September, EVN asked for an increase in electricity prices, but several leading economists denied the need for it, saying that the proposal was inappropriate in the context of the country\'s rising inflation rate.