Proposal to cancel the power ladder pricing method

Vietnam Electricity Group (EVN) has requested Vietnam Energy Association (VEA) to cancel calculating power prices under accumulative method.

According to EVN deputy director general Dau Duc Khoi, the power ladder pricing method has caused power wastage. There are numbers of wealthy households paying 30 million dong a month on electricity, whereas there are poor ones who do not use the first level of 50 kWh of the ladder (selling below cost); they often use just about 20 kWh. Therefore, the first 50 kWh support has no meaning to the rich and is unfair to the poor.

At the international seminar on solutions to mobilise capital for Vietnam energy development held on July 7, Khoi said many investment and development projects for power industry have not been started due to the lack of funds. In particular, as in the Sixth Power Development Master Plan, EVN would need $33 billion (accounting for 35 percent) for the new power projects but there is only $20 billion mobilised, in shortage of 40 percent of total capital needed. The investment projects outside EVN need $52 billion, but have mobilised just 40 percent of total capital, in shortage of $40 billion. In addition, there have been delays in a number of ongoing power plants constructions because of capital shortage such as Vung Ang, Nghi Son thermo-power plants (using loans from Japan but in shortage of 15 percent reciprocal capital).

Tags: Vietnam electricity prices, Vietnam energy

Posted by VBN on Jul 10 2010. Filed under Energy. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry