HCMC – Vietnam is considering hiking electricity tariffs this year as the last adjustment took place almost four years ago while input costs of power generation have soared since.
Deputy Minister of Industry and Trade Do Thang Hai said at a press conference yesterday, February 2, that the hike would be carefully weighed given inflation risk.
Under the current regulations, if input costs increase or fall by three percentage points or more, electricity prices could be adjusted accordingly. Electricity pricing must be reported to the prime minister as it affects the macro-economy and daily life, Hai said.
The current adjustment cycle of electricity prices is at least six months, yet the last adjustment was made on March 20, 2019.
Prime Minister Pham Minh Chinh recently told the Ministry of Industry and Trade to urgently change the electricity price bracket and adjust power retail tariffs.
The ministry has asked Vietnam Electricity Group (EVN) to regularly update input costs and hire independent auditing units to examine the financial situation of this group and its member units. EVN and other agencies were asked to carefully assess the impact of adjustment and propose an appropriate plan for electricity pricing.
EVN racked up losses of over VND31 trillion in 2022, so the Government assigned the Committee for Management of State Capital at Enterprises to propose other solutions besides electricity price hikes to ensure a financial balance for this group.