Electricity prices to increase by nearly nine percent

The Prime Minister has approved a plan by the Ministry of Industry and Trade to increase electricity prices by 8.92 percent, an increase of VND800 to VND948.5 per kWh from March.

Electricity prices will increas by 8.92 percent, an increase of VND800 to VND948.5 per kWh from March.

According to the plan, consumers will pay market prices for energy from January 2010.

To avoid negative affects which result from the increase, the PM asked the Ministry to apply a subsidy policy for the poor.

In the countryside, where the Ministry has not applied progressive energy prices, the PM allowed them to temporally apply ceiling prices for energy at VND700 per kWh. However, the Ministry must be ready to switch to progressive prices in this area by September 1.

The PM also decided to carry out a subsidy mechanism for the poor from January 2010. Households that use under 50kw per month will receive deductions from their monthly energy bills.

Every year the Ministry will decide energy price adjustments based on trade, production and the consumer price index.

By Tran Binh-Translated buy Viet Khoa

Other news