Though a recent resolution has allowed electricity price adjustments every three months, the Ministry of Industry and Trade (MIT) denied an increase in October because the inspection over power production cost has not been completed.
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| The most recent electricity price increase is on July 1, 2012 |
At a regular press conference on October 1, Dang Huy Cuong, Director of Electricity Regulatory Department under MIT confirmed the decision not to increase electricity prices this month.
For approval of the most recent increase on July 1, 2012, the Electricity of Vietnam (EVN) had to calculate the total expenses beforehand. To have another price hike, the MIT and the Ministry of Finance must inspect the power production costs of EVN in 2011 and EVN must estimate the total cost for the period of 2013-1015.
After the results of the inspection are finalised, the MIT will make a proposal to the Government for an adjustment plan for the last months of this 2012 and for 2013.
Since September 15, coal prices for local electricity procurers have increased by 28-40%. The price increase is expected to bring the National Coal Mineral Industries Group (Vinacomin) an additional VND600 billion in revenue this year (USD28.5 million).
However, Cuong said the actual electricity price increase will depend on costs from both 2011 and 2012.
