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| EVN has announced that it will raise power prices by 5% from December 20 |
Average power prices will increase to VND1,304 (USD0.06)/kWh, up VND62 per kWh, following approval by the Ministry of Industry and Trade.
However, the price will still be kept unchanged at VND993 per kWh for the first 0-50kWh for poor households and 0-100kWh for other households.
According to EVN, the power price hikes were necessary to cover unexpected costs due to purchasing power from oil-fuelled power plants last year because the power company’s own hydropower plants had ceased production because of droughts.
The higher electricity prices will also help attract more investors into the power sector, encouraging people to save and use electricity more efficiently, EVN added.
Minister of Finance Vuong Dinh Hue recently said the Government was considering whether the price of electricity should be changed one time for the entire year, or if it should be adjusted every quarter, noting that the impact of any price change would be taken into account.
The minister emphasised that such price adjustments are unavoidable as the state cannot subsidise the power sector forever.
In March this year, EVN raised power prices by 15.28%.
