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Saturday, June 22, 2024

Vietnam hikes average retail power tariff by 4.5%

The Saigon Times

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HCMC – The Ministry of Industry and Trade has decided to revise up the average retail electricity tariff by 4.5%, with immediate effect.

The average retail power tariff is now VND2,006.79 per kWh, excluding the value added tax (VAT).

For household consumers, there are six progressive tariff rates: VND1,806 per kWh for monthly consumption of up to 50 kWh, VND1,866 per kWh for monthly consumption of 51 to 100 kWh, VND2,167 per kWh for monthly consumption of 101 to 200 kWh, VND2,729 per kWh for monthly consumption of 201 to 300 kWh, VND3,050 per kWh for monthly consumption of 301 to 400 kWh, and VND3,151 per kWh for monthly consumption of 401 kWh or above.

This afternoon, after the retail power tariff increase decision came out, Vietnam Electricity Group (EVN) held a news briefing.

Nguyen Quoc Dung, sales manager of EVN, said that for those eligible for the first tariff rate, the monthly bill would rise by VND3,900, VND7,900 for the second tariff rate, VND17,200 for the third tariff rate, VND28,900 for the fourth tariff rate, VND42,000 for the fourth tariff rate, and VND55,600 for the fifth tariff rate.

The electricity tariff increase is ascribed to the drought- and El Nino-induced fall in hydropower generation, stubbornly high fuel costs, and higher prices of coal imported for thermo-power stations.

This was the second electricity tariff hike this year, after the 3% increase in May. With these two adjustments, the electricity prices have gone up by more than VND142 per kWh since the beginning of the year.

The current electricity prices are still below production costs, EVN chief accountant Nguyen Dinh Phuoc said at the press briefing.

This price hike is expected to help EVN generate additional revenue of about VND3.2 trillion by the end of the year, easing its financial woes in 2023.

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