The Ministry of Industry and Trade (MoIT)’s Electricity Regulatory Authority has raised the retail price for electricity by 8.36% to an average of 1,864.4 VND (USD 0.0804) per kilowatt hour, excluding VAT. According to the plan, the new prices are:
Retail prices for households now range from VND 1,678 (USD 0.072) per kWh to VND 2,927 (USD 0.13) per kWh depending on usage.
Poor households would still receive support equivalent to 30 kWh per month.
Power tariffs for businesses and industrial zones are now divided into two levels: VND 3,076 (USD 0.13) per kWh for peak hours and VND 970 (USD 0.042) per kWh for off-peak hours.
The decision is based on a review of input costs for electricity production including coal and gas as well as interest rate differences in EVN’s foreign currency-denominated debts. The increased power tariff revenue of over VND 20 trillion (USD 0.86 billion) would be used to buy coal and pay gas suppliers and power plants.
Vietnam’s hydropower potential has almost been fully exploited, while oil and gas reserves are running low. Furthermore, the depletion of coal reserves has turned Vietnam from a net exporter to net importer of coal in the recent years. The government is simultaneously developing favorable policies for new investment in renewable Energy such as solar and wind Energy in order to meet the Energy demand from the fast growing Manufacturing industries in the country.
(Sources: Vietnam News; EVN)