Several experts have gone on record as saying that the price hikes proposed Electricity Group of Vietnam (EVN) are unfair to consumers.
According to EVN, power consumption in March may reach 355 million kWh per day, with the national power output fluctuating between 17,700 and 17,900 MW.
Water levels at several large hydropower facilities in the central and central highlands regions have caused concern because they are at below-normal levels.
EVN’s power production on the decline
An anonymous EVN official said that, nationwide, hydropower dams are facing a deficit of 5.29 billion cubic metres.
The modest capacity of these hydropower facilities poses a risk to regions in the south. With no new power sources on the horizon, this leaves EVN to rely on diesel fueled sources to fill in the gap.
EVN is said to be considering another price hike, even with decreased output. One economist said that Vietnam National Coal-Mineral Industries Group is now taking huge losses, which will likely be passed on to the consumer in the near future.
Dang Huy Cuong, Director of the Ministry of Industry and Trade’s Electricity Regulatory Authority, said that the prime minister had assigned the Ministry of Finance to coordinate with other agencies to stabilise coal prices for electricity production.
Cuong noted that if the Prime Minister were to adjust coal prices for electricity production to accurately reflect world market rates, it would result in a 30% increase of electricity prices.
The Ministry of Industry and Trade recently made a proposal to the Prime Minister in a draft decision on power regulation that they be allowed to adjust prices every three months, which would give the group authority to increase prices by a maximum of 5% of their claimed production prices.
The new policy will be enforced if the Prime Minister does not respond within 15 days. This would give EVN the right to adjust prices four times a year instead of the current limit of two.
