Starting Thursday, Vietnam’s power prices increased by 4.5% to over VND2,000 (8.2 U.S. cents) per kWh, the second time they went up this year.
Average power prices have increased from VND1,920.37 to VND2,006.79 per kWh, just six months after prices increased by 3% in May, state-owned Vietnam Electricity (EVN) announced.
Nguyen Quoc Dung, head of the business department of EVN, said the government would continue to support those in circumstances through cash financially, their values being 30 kWh worth of power use a month.
Nguyen Dinh Phuoc, EVN’s head accountant, said that power prices for domestic use are still lower than those for industrial use after the increase. He also said EVN proposed the 4.5% increase to ensure social security and socio-economic criteria.
The price increase will help EVN earn an additional VND3.2 trillion (US$131.39 million) until the end of this year.
EVN said certain factors impacted its costs this year, including hydropower production dropping by 17 billion kWh, while fuel prices remain high.
Production costs account for 83% of energy pricing, it said. The firm adds that with current fuel prices, each kWh of energy produced costs around VND2,098.
Last year, EVN reported over VND26 trillion of losses.
In a recent report by the Ministry of Planning and Investment, its losses have increased by another VND28 trillion in eight months.