PM agrees with proposal for 7.5% increase.
Prime Minister Nguyen Tan Dung chaired a meeting on March 5 at the Office of the Government to hear plans from the Ministry of Industry and Trade (MoIT) and Electricity of Vietnam (EVN) to adjust the electricity price this year.
At the meeting were Deputy Prime Ministers, leaders of the Office of the Government, MoIT, the Ministries of Planning and Investment (MPI) and Finance (MoF), the State Bank of Vietnam (SBV), and EVN.
After hearing reports from MoIT and EVN, participants agreed to increase the electricity price by 7.5 per cent, bringing the average price to VND1622.05 ($0.08) per kWh, to take effect on March 16.
The 7.5 per cent increase is geared towards ensuring EVN does not incur losses. Last year it racked up losses from fluctuating exchange rates, of VND8 trillion ($380.95 million). The increase will also contribute to meeting the GDP growth target of 6.2 per cent and inflation of 5 per cent this year.
On behalf of the government the PM asked MoIT and EVN to provide details to the community on the reasons behind the increase. EVN must also continue to implement previous solutions from the government on improving production efficiency, which will reduce power losses to 8 per cent this year from 8.49 per cent in 2014, and improve its workplace productivity by 9 per cent.