Saturday, March 23, 2019 5:13:12 PM - Markets open
VN-INDEX 988.71 +6.93/+0.71%
HNX-INDEX 108.09 +0.28/+0.26%
UPCOM-INDEX 57.23 +0.34/+0.60%
Electricity prices to increase by 8 percent this month
VietnamPlus - 3/6/2019 10:14:27 AM
 (0 ratings. You must sign in to rate.)
Power prices will increase by an average of 8.36 percent at the end of this month, said Deputy Minister of Industry and Trade Hoang Quoc Vuong on March 5.
Accordingly, the retail electricity price will be adjusted from the current 1,720 VND (7 US cents) per kWh to 1,864 VND per kWh (8 cents) excluding value-added tax.
Vuong said the power price rise was one solution to improve the finances of the electricity sector.
Electricity prices have been adjusted seven times since 2010. The latest adjustment was at the end of 2017.
According to Decision 24 issued by the Prime Minister, there was supposed to be an adjustment in 2018. However, prices were kept unchanged in order to stabilise the macro-economy despite the fact that increasing costs have greatly affected the power sector, he said.
He added that a price hike could not be delayed any longer.
The deputy minister said the Electricity of Vietnam (EVN) reviewed every expense and input factor that affects power prices. The PM also gave permission to raise electricity prices in the first quarter of this year.
He said the power price adjustment would have effects on GDP and CPI. According to calculations by the ministry and General Statistics Office, the hike would reduce GDP by 0.22 percent and increase CPI by 0.29 percent.
He noted that the Government’s targets this year were to stabilise the macro-economy and curb inflation to achieve a GDP growth rate of more than 6.8 percent. The power price adjustment was calculated to meet the targets approved by the National Assembly.
A detailed announcement on power prices will be released by next week, he said.
The Government stipulated that a below-10 percent increase in electricity price comes within the jurisdiction of the Ministry of Industry and Trade (MoIT) after receiving the Prime Minister’s permission.
According to the MoIT, the country’s electricity price was more than 7 cents before adjustment. Meanwhile, power prices in India and China stand at 8 cents, Laos at 9 cents, Indonesia at 10 cents and Canada at 11 cents.
In January, Deputy Prime Minister Vuong Dinh Hue asked ministries to make input factors more transparent. For example, the power price adjustment must be calculated with the prices of gas and coal sold for electricity production as well as foreign exchange rates.
The power price adjustment must attract energy investors and cover costs for production and consumption. The electricity sector must reduce production costs with a suitable labour structure and the application of technology, Hue said.
Earlier, the ministry issued Decision No 281 which increases the prices for power generation in 2019.
Accordingly, the prices for power generation at coal-fired power plants are set to range between 1,677 VND and 1,896 VND per kWh during 2019, excluding some taxes, sea port fees and infrastructure. The ceiling prices for power generation at hydropower plants this year would increase by 20 VND per kWh to reach 1,100 VND per kWh, excluding taxes.
These prices are used to negotiate power purchase agreements between the State-run EVN and power plants.-VNS/VNA
Read original article here
Newer News
22/03 A billion pairs of shoes exported
22/03 Huge potential for Vietnam, Laos to collaborate in cooperative economy
21/03 Seminar talks Vietnam’s economic growth model
20/03 Prime Minister welcomes Hong Kong investors
20/03 Vietnamese brands make global mark
20/03 Seafood expo bolsters Vietnamese exports to US market
18/03 RoK steel companies eye investment in Vietnam
15/03 Government may withdraw environmental tax hike proposal
15/03 Textile-garment exports aim for 40 billion USD
14/03 VN seeks new ways to attract private funds for infrastructure projects
Older News
05/03 Cashew price to recover this year
04/03 Experts discuss country’s socio-economic development strategies
04/03 State capital at four firms to be auctioned in March
04/03 February’s industrial production index declines due to lunar New Year
28/02 FDI up 2.5 times in first two months of 2019
28/02 Vietnam, US sign cooperation agreements worth 21 billion USD
27/02 FDI in first two months of 2019 reaches $8.5 billion
27/02 Summit presents golden FDI opportunities
27/02 More than 2.7 billion USD worth of ODA pumped into irrigation
25/02 Tuna exports likely to reach $1b this year
Newsletter Signup
Top Stories
Vinalines Logistics’ profit growth projected at least 10 percent
Shares move little as Tết approaches
Consumer price index slips 0.07 per cent during August
Average VND/USD exchange rate rises by another 1%
Vietnam doubles dong’s trading band after China devalues yuan
Market Update
Last updated at 3:10:50 PM
VN-INDEX 988.71 +6.93/+0.71%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.