PM approves electricity rate hike

Prime Minister Nguyen Tan Dung yesterday approved a new average electricity rate of VND1,242 (US$0.05) per kWh, an increase of VND165 ($0.007) for one kWh compared to last year.

The new electricity rate list, which will go into effect early next month, will include seven levels with prices increasing according to level of consumption.

The first and lowest level, which made up 80 per cent of the newly-approved average electricity cost, will be applied to households that consume less than 50kWh per month.

Those who wished to buy electricity at this level must register with electricity sellers and would be required to pay a higher price if they consumed more than 50kWh each month in three months.

Poor households, including those with an average income of less than VND400,000 ($19) per person per month in rural areas and less than VND500,000 ($24) per person per month in cities, will receive support for 50kWh per month, equivalent to VND30,000 ($1.4) per month.

Household electricity prices in remote and rural areas, and islands that are not connected to the national electricity network will have floor and ceiling prices of 1.5 times and 2.5 times higher than the average price. They will receive Government subsidies to make up the difference.

The PM has asked the Finance Ministry, in co-ordination with the Ministry of Industry and Trade, to complete an assessment report on the impact of the electricity price hike and submit to the Government in the first quarter of this year.

Last year, the Government decided to raise the retail power price by 6.8 percent over the 2009 rate. The price list consisted of seven levels, ranging from VND600 ($0.02) to VND1,890 ($0.09) per kWh. — VNS

Tags: Vietnam electricity prices, Vietnam energy