>> Government approves power price hike of 15.28%
>> Finance Minister: Petroleum, power price hikes to offset losses
State Audit of Vietnam has started auditing the recent increase in the price of power imposed by state-owned Electricity of Vietnam Group (EVN).
Due attention will be paid to clarifying whether or not the price hikes of March 1 from ENV, the sole electricity distributor of the nation, have been warranted.
The state audit will scrutinise methods used to calculate electricity prices, which might drive up the cost of power, and which leads to power shortages.
Other sectors of industry, which consume large volumes of energy, will also come under scrutiny.
Earlier, the Ministry of Finance emphasised the necessity of raising power prices by saying that EVN’s losses would continue to increase unless power price is increased.
According to the ministry, if power prices were not adjusted up for this year, EVN might incur additional losses of VND29.5 trillion (USD1.41 billion), which would bring the stated losses for the year up to VND57 trillion (USD2.72 billion).
In 2009, EVN was found out to be misusing VND757 billion (USD36.22 million) by going ahead with investment projects without government approval.
In addition to EVN, other state audits will be carried out, including those on Vietnam National Shipping Lines (Vinalines), Dong Nai Food Industrial Corporation as well as a wide range of investment projects in Hoa Binh, Phu Tho, Hoi An and Gia Lai.