Vietnam has raised its electricity price range by double-digits for the first time since 2017, paving the way for a hike in retail prices.
The minimum electricity price was increased 13.7% to VND1,826.22 (7.8 U.S. cents) per kilowatt-hour beginning February 3, according to a decision signed by Deputy Prime Minister Le Minh Khai.
The maximum price was raised 28.2% to VND2,444.09 per kilowatt-hour.
An increase in the electricity price range does not necessarily equate to a retail price hikevi. However, the new range, along with an updated cost of electricity production in 2022, will be key inputs for the Ministry of Industry and Trade to determine Vietnam’s retail prices for this year.
Vietnam’s electricity retail price had remained unchanged since 2019 at VND1,864.44 per kilowatt-hour.
Vietnam Electricity posted a loss of VND31 trillion last year, which it blamed on rising input and production costs. It recently proposed an increase in retail prices.
The industry ministry has said that it was reviewing the proposal and will announce a “reasonable plan” to raise prices.
Prime Minister Pham Minh Chinh said last week that the electricity price hike should be kept reasonable and in line with real Vietnamese incomes.
Vietnam’s electricity price is 50% lower than that of the Philippines, where electricity is more expensive than anywhere else in Southeast Asia. Vietnamese prices are also lower than those in Indonesia and Thailand, according to energy data platform GlobalPetroPrices.
On the other hand, electricity costs more in Vietnam than it does in Laos, Russia, Bangladesh, India and Turkey.
