EVN seeking to raise power prices from Feb 1, instead of Mar 1

The state-owned Electricity of Vietnam Group (EVN) is seeking approval from the government to hike the domestic power retail prices from Feb. 1 instead of Mar. 1 annually stipulated early by the Ministry of Industry and Trade.

The move is aimed to boost efficient and economic electricity use across the country, balance EVN’s expenditures and facilitate the group’s capital mobilization for investment, the Lao Dong newspaper reported Monday, citing EVN.

Earlier, the state-owned Vietnam National Coal-Mineral Industries Group (Vinacomin) also proposed to raise to raise coal prices to the electricity sector from Jan. 1, said Minister of Industry and Trade Vu Huy Hoang.

The ministry will submit the groups’ proposals to the government for approval within the first quarter of this year, Hoang added.

EVN has mapped out five scenarios to raise electricity prices by between 6.2% and 17% in 2010 in line with the increase in its productions costs as a result of coal price rise.

The country’s average power price will be up 17% to VND1,110.8/kWh in accordance with a proposal to raise the coal prices by between 140% and 150% by the state-owned Vietnam National Coal-Mineral Industries Group (Vinacomin). If the coal price hike proposal is approved, it will drive up EVN’s costs by VND4.229 trillion ($228.854 million) this year.

EVN said energy use in Vietnam is inefficient as the country has to spend VND2.42 worth of energy in order to make VND1 worth of GDP.

(Lao Dong)

Tags: Vietnam energy, vietnam power