PM Phuc demands review of electricity price increase

May 05, 2019 | 10:52

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PM Nguyen Xuan Phuc on Saturday has tasked leaders of the Ministry of Industry and Trade and the Electricity of Viet Nam (EVN) to review the decision on increasing power price and report to the Government chief.

pm phuc demands review of electricity price increase

The decision to increase retail price of electricity takes effect since March 20, 2019.

The Ministry of Industry and Trade had decided to raise the average retail price for power by 8.3pc, applicable since March 20, in a bid to cover input costs for electricity production.

The hike means that the average price climbed to VND 1,864 (8.03 cents) from VND 1,720 (7.49 cents) per kWh, including VAT.

Poor households would still receive support equivalent to 30 kWh per month.

However, over the past few days, some households claimed that their electricity bills increased abnormally by 2-3 times or even 4-5 times

Therefore, PM Phuc asked for reviewing the power price adjustment and methods to calculate the new price and explain to the public.

Electricity consumption picked up 16pc and 15pc on average in Ha Noi and Ho Chi Minh City, respectively, in April compared to March, Hoang Quoc Vuong, Deputy Minister of Industry and Trade told VGP on Saturday.

April’s higher power demand was attributed to hot weather across the country, Vuong explained.

Vuong said the Ministry on May 3 established a delegation which includes representatives of the ministry itself, the Ministry of Finance, the Association for protection of consumers, the Fatherland Front, the National Assembly’s Economic Committee and others to inspect the implementation of its decision.

The delegation will evaluate the impacts of the power price increase on businesses, Vuong stated.

In 2008, nine million households consumed below 100kWh/month each, accounting for more than 35% of the total households. That is why the Ministry of Industry and Trade divided power prices into six levels, with the first one from 0-50 kWh and the next from 51-100 kWh to support low-income households.

VGP

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