Electricity of Vietnam (EVN) have announced an increase in average electricity retail prices by 3 percent to VND1,920.37 (USD81.71) per kWh from today, May 4.
The increase was attributed to government regulations that state when input costs for the average electricity retail price increase or decrease by 3 percent or more, electricity prices could be amended. If the adjustment was 10 percent higher than the current rate, the Ministry of Industry and Trade and the Ministry of Finance would allow the prime minister to confirm the decision.
EVN specified it had incurred losses of over VND36.29 trillion (USD1.55 billion) last year due to rising costs.
It cost the firm VND2,032.26 to produce one kWh of electricity in 2022, up 9.27 percent on-year, meanwhile, electricity consumer prices have been maintained at VND1,864.44 per kilowatt-hour since 2019.
Vietnam News Agency cited a report from the Ministry of Industry and Trade as saying that If the electricity retail prices were kept the same, EVN might incur losses of up to VND64.9 trillion in 2023, which would cause EVN to struggle with operational cash flows.
At a recent meeting of the Steering Committee on Price Management, Deputy Minister of Industry Do Thang Hai said electricity prices would inevitably be adjusted in the coming period, requiring the calculation of other commodity prices to make the appropriate modification.
Retail electricity prices increase
Electricity of Vietnam have announced an increase in average electricity retail prices by 3 percent to VND1,920.37 (USD81.71) per kWh from today, May 4.
Source: dtinews.vn, Vietnam News
