PM demands explanation for consumer electricity price hike

PM Nguyen Xuan Phuc has asked EVN to report on the recent power price hike and requested the Government Inspectorate, Ministry of Finance and Ministry of Industry and Trade to review the electricity price adjustment process.

PM Nguyen Xuan Phuc has asked EVN to report on the recent power price hike and requested the Government Inspectorate, Ministry of Finance and Ministry of Industry and Trade to review the electricity price adjustment process.

 

Prime Minister Nguyen Xuan Phuc

Deputy head of the Government Office Nguyen Duy Hung signed and sent the official prime ministerial directive to the Government Inspectorate, Ministry of Finance and Ministry of Industry and Trade on May 3.

According to the official document, the recent price hike has been highly unpopular with the public. Related agencies were asked to review the prices, calculation methods and the past bill collecting methods. They must report the results to the PM in June.

From March 20, the Ministry of Industry and Trade increased electricity prices by 8.36% to VND1,850 (8 US cents) per kWh, excluding value-added tax. The ministry claimed that the new prices had been calculated carefully so that it would not affect the CPI and GDP growth rate and will only affect factories such as steel and cement plants.

Higher prices of coal and exchange rate differences were cited among the major reasons for the hike.

After the new prices were applied, many households have been surprised at the surge in their bills. EVN explained that the bills surged suddenly because the new prices were applied at the start of summer when electricity consumption increase.

The previous price hike was on December 1, 2017, after three years of stable prices. The electricity price that time was increased by 6.08% to VND1.720 per kWh, excluding VAT.