The Vietnamese Ministry of Finance has announced its latest plan on raising consumer electricity rates by 7.6% instead of 8.8% as previously planned.
The ministry’s proposal will be submitted to the government for approval tomorrow, according to which, the price of electricity will increase from VND 783/KWH to VND 842/KWH instead of to VND 852/KWH as they previously announced.
Under the plan, the ceiling price on consumer electricity rates in rural areas will remain unchanged at VND 700/KWH. In urban areas, the consumer rate will remain unchanged, at VND 550/KWH instead of VND rising to 620/KWH, but only for the first 100 KWH used each month. The increase will be applied to the 101st KWH and beyond for each billing cycle.
Electricity price increases for industrial production will be applied somewhat differently. For industry, there will be an increase of 20% during peak usage hours, while the rates for off-peak hours will not see increases.
Tomorrow’s governmental meetings will answer when the proposed rate hike will take effect. The Ministry of Industry wants to raise electricity rates as of January 1, 2007.
In the future, electricity prices will be regulated by the Power Regulatory Agency, which is now under the Ministry of Industry, but will become an independent agency.