Electricity sector to suffer loss of tens oftr dong

At the online conference, minister of finance, Vu Van Ninh, said that till December 31, 2010, the electricity sector posted a loss of approximately 28 trillion dong. If maintaining the current electricity price, by late 2011, the loss would increase to about 29 trillion dong.

The coal selling price for the power sector is now equal to 67-70 percent of the cost, equalling to 45-48 percent of the retail price and 32 percent of the export price of coal.
Therefore, the coal sector will have to bear the loss together with electricity industry.

If applying the adjustment to avoid losses, the electricity price must increase by 62 percent or 668 dong per kWh. However, such adjustment will be too big, causing shock to the economy.

This electricity price raise of 165 dong/kWh (averaging at 1,242 dong/kWh) is equal to only one third of the needed adjustment level. According to the adjustment applying from March 1, the new electricity price list will include seven levels.

Accordingly, the first level (0-50 kWh) will apply the average electricity price of 1,242 dong/kWh, the second level (0-100 kWh) applying the approved average electricity price and the price will increase gradually for following levels.

As noted by the prime minister the first level will be applied for low income households only (being households with the electricity consumption of less than 50 kWh/month).

Low-income households who want to purchase the electricity at the price of the first level must register according to the guidance of the electricity seller. If in three consecutive months, the total power consumption of the registered household exceeds 150 kWh, the seller will automatically switch to the electricity price of the second level and following levels.
The poor households will be supported 30,000 dong/household/month for 50 kWh/month.

The electricity price framework in rural areas, mountainous and island regions where have not joined the national grid yet will include the ceiling and floor prices, of which, the floor price will be equal to 1.5 folds against the average electricity price and the ceiling price will be equal to 2.5 folds of the average electricity price.

The total support for the poor households would be about 1.12 trillion dong per year. - Nguoi lao dong

Tags: Vietnam electricity, Vietnam energy, Vietnam power shortage