Electricity rates will be up by five per cent from today, December 22, as per a circular issued by the Ministry of Industry and Trade, to now cost VND1,437 (US$0.06) for one kWh, excluding VAT.
Retail price of electricity for households will increase from VND66-115, based on rates on the price escalation chart.
But the price for low-income households, who use less than 50kWh per month, will remain unchanged at VND933 per kWh.
Other households will have to pay VND1,350 for their first 100kWh, up VND66 over the current price. They will be charged an extra VND88 per kWh (from current VND1,457 to VND1,545) on their 101st kWh, while those using from 151-200 kWh will pay VND1,947 per kWh.
Electricity prices for voltage over 110kV will range from VND754 to 2,117 per kWh. For voltage upto 110kV rates will rise between VND783 to 2,263 per kWh.
The increase on electricity price will create a negative impact on the national economy, said some economists and businessmen.
Nguyen Tien Nghi, vice chairman of Vietnam Steel Association, said that the increase would badly affect steel enterprises.
"The rise in production costs, including the increase in electricity rates will be a heavy burden for steel enterprises." he said.
"Currently, the association does not provide them with any support. In a market economy, these companies have to solve such problems by themselves", he added.
This is the second time prices have been hiked this year, after a 5 percent increase earlier in July.