Electricty price proposal in 2011 released

The Ministry of Finance (MoF) has recently received the proposal for the electricity price in 2011 submitted by the Ministry of Industry and Trade (MoIT).

The ministry is taking evaluations and assessments the impacts of the electricity price schemes to the consumer price index (CPI) and other groups of commodities.

Answering VnExpress.net, this source of information from MoF confirmed that the electricity price will increase. The problem is that when is the suitable time for the adjustment of electricity price. The ministry said that any proposal relating to the adjustment on price will be carefully calculated basing on the foundation of input costs and the impacts on other commodities and the tolerance of the consumer.

As regulated, the Electricity of Vietnam (EVN) will build the price plan basing on its business and production activities. The Electricity Regulatory Department under the MoIT will control and propose the increase and decrease of electricity price. The MoF will evaluate and assess the impacts of this adjustment to other commodities and consumers.

In fact, from the end of December 2010, MoF also mentioned about this issue of increasing the electricity retail price in 2011.

In March 2010, the ministry also made an adjustment on the electricity retail price whereby the average power price increased 6.8 percent against 2009 to 1,037 dong per kWh. This increase was built basing on the coal price in 2010. Of which, the dust coal price for the Type 5 saw a rise of 28 percent from 405,500 dong to 520,000 dong per tonne and the dust coal price for the Type 4B increased from 442,000 dong per tonne to 648,000 dong per tonne, rising 47 percent.

At the time of building the electricity price plan, the highest rise proposed by ministries of finance and industry and trade and EVN was 10.7 percent. And then, the government decided to take the most suitable level of 6.8 percent that has been applied since March 1, 2010. – Vietbiz24

Tags: Vietnam electricity prices, Vietnam energy