Thursday,  Oct 18, 2018,00:50 (GMT+7) 0 0
Ministry hikes power tariffs by 6.08%
Van Nam
Friday,  Dec 1, 2017,15:13 (GMT+7)

Ministry hikes power tariffs by 6.08%

Van Nam

HCMC – The average retail price of electricity today rises 6.08% to VND1,720 per kWh, exclusive of value-added tax, against the previous one of VND1,622 per kWh, according to the Ministry of Industry and Trade.

Prime Minister Nguyen Xuan Phuc gave the State-run Electricity Vietnam Group (EVN) the go-ahead to do so, after the 2016 electricity production and trade costs had been taken into consideration.

In addition to input costs, the PM considered relevant fees which have yet to be included in the 2016 electricity production and trade costs and the 2017 cost estimates in line with his Decision 24/2017/QD-TTg.

The PM issued a new mechanism stipulated in the decision this July, allowing EVN to hike the average power retail price when input costs rise 3%, instead of 7% as before.

EVN’s financial statements on the 2016 electricity production and business costs were cited by Tuoi Tre newspaper as saying the group produced 159.79 billion kWh of commercial electricity, and its total power losses were 7.57%.

The total cost of the 2016 electricity production and trade was over VND266.1 trillion (US$11.7 billion), averaging out at VND1,655 for each kWh sold. EVN suffered a loss of VND593.46 billion from its electricity production and trade last year, according to the ministry.

However, thanks to revenue from other activities, the group still made profit of a combined  VND2.65 trillion.

Currently, the ministry is drafting a set of regulations on new electricity retail prices. The draft states that electricity retail prices would be set for each category of customers, namely producers, businesses, lodging facilities, administrative agencies, and households.

The retail price for households is still divided into six groups. Families who consume up to 50 kWh of electricity per month would pay 92% of the average retail price. Those using from 51 to 110 kWh will pay 95% of the price, 101-200 kWh 110%, 201-300 kWh 138%, 301-400 kWh 154%, and over 401 kWh 159%.

The move is to encourage household customers to use less electricity.

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