Vietnam to increase electricity prices 7.5 percent since Mar.16

March 05, 2015 | 18:00

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The prices of electricity in Vietnam will go up 7.5 percent since March 16 at the suggestion of the state-run Electricity of Vietnam (EVN), according to a source from the office of the central government released today.

The increase was approved by the Prime Minister Nguyen Tan Dung, who chaired a meeting today in Hanoi with representatives of the Ministry of Industry and Trade and EVN to consider the proposal.

So, the average price of electricity in Vietnam will be VND1,622/kWh since March 16.

The adjustment of the electricity prices is targeted at helping EVN cut the loss in the past years, ensuring the Gross Domestic Product growth at 6.2 percent this year, and controlling the inflation rate at five percent.

It is estimated that EVN will suffer a loss of VND12 trillion (US$577 million) in 2015 if the electricity prices remain unchanged.

In addition, EVN is now sustaining another loss of VND8 trillion ($384.6 million) due to the exchange difference in past years.

At the meeting, the Prime Minister also instructed EVN to improve its grid to pull down the loss of electricity to 8 percent this year. In 2014, it was 8.49 percent.

Tuoi Tre

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