Electricity prices to be revised up following holiday

Hanoi – The Ministry of Industry and Trade has allowed the Vietnam Electricity (EVN) to revise up electricity prices by a maximum of 3 per cent following the April 30 - May 1 holiday.

Under a document signed by Deputy Minister of Industry and Trade Dang Hoan An on April 27, the adjustment of the average retail electricity prices in 2023 must comply with the regulations stated in the Prime Minister’s Decision dated June 30, 2017, on the mechanism for the work.

The ministry asked the EVN to point out objective and subjective causes of its current financial situation, adopt drastic measures to reduce production and trade costs, including adopting advanced technology and digital transformation, and negotiate with investors and suppliers in the principles of harmonising interests and sharing risks.

It was also assigned to build a comprehensive communication plan to reach public consensus on price adjustment, raise public awareness of saving electricity, and launch a nationwide power saving movement.

The plan to raise transmission tariffs for energy indicates that Vietnam must take further steps to alleviate system stress and entice private sector investment in transmission.

Maintaining control over power prices exerts significant pressure on the electrical business, but rising electricity prices may expose the economy to the hazards of inflation.