Vietnam inclines to raise electricity prices by 18% in today decision

The Vietnamese Government will decide the level of electricity price hike today and it inclines to raise to pick up 18%

The Vietnamese Government will decide the level of electricity price hike today and it inclines to raise to pick up 18% rather than 11% option proposed by the Ministry of Finance(MoF) and the Ministry of Industry and Trade(MoIT), respectively, the online newspaper Danviet quoted an official of MoIT.

Earlier, Prime Minister approved the plan to raise the electricity prices in 2011. Then, the prices of electricity will begin to increase from this March.

This will be the third straight times the prices of electricity have increased since 2009. The previous upward adjustments were on March 3.

Last year, the prices of electricity posted an average on-year increase of 6.8% to VND1,037/kWh.

This hike is much lower than the Vietnam Electricity Corporation (EVN) ‘s proposal of 32%, but enough to affect on the price levels in the coming time. Meanwhile, the shortage of electricity is forecast to reach 3 billion kWh this year, highly pressuring on the macro economy, Le Dang Doanh, senior economist shared. – Stoxplus.com

Tags: Vietnam electricity, Vietnam energy, Vietnam power shortage