Gov’t allows EVN to gradually raise power price

July 21, 2012 | 06:01

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The government has just allowed the state-owned Electricity of Vietnam Group (EVN) to gradually raise the electricity price in order to make up for losses the state utility company incurred in previous years.

Under its sales and investment strategy for the 2011-2015 period approved by the government, EVN can increase the power price under the supervision of the Ministry of Finance. The power price next year under this scheme will be equal to the market level, meaning all cost factors will be calculated.

EVN is also allowed to account foreign exchange differential in the past into the power price calculation for the 2012-2015 period.

The power supplier has chartered capital of VND143.4 trillion following its recent asset valuation and now looks set to make a profit between now and 2015, according to this government-approved scheme. It aims to meet the financial targets set by creditors such as a debt to equity ratio of less than 300 per cent, and self-investment ratio of more than 30 per cent.

EVN must satisfy the domestic consumption demand for commercial electricity by growing its power generation capacity by 13 per cent per annum during the period.

It must guarantee the construction progress of 20 on-going power plant projects with a combined capacity of 11,600 MW, including such hydropower plant projects as Son La, Huoi Quang and Ban Chat, and thermo-power projects like Hai Phong 2, Quang Ninh 2 and Mong Duong 1.

EVN also plans to deploy 12 power plant projects with a combined capacity of 12,410 MW from 2016 to 2020. Key power facility projects are Ninh Thuan 1 and Ninh Thuan 2 nuclear power plants, Duyen Hai 2 and Vinh Tan 4 thermal power plants, and Bac Ai pumped-storage hydroelectric plant.

Saigontimes

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