VietNamNet Bridge - An increase of 15.28 per cent in the average electricity price from next month has been approved by the Prime Minister.

The new electricity price plan would have separate categories for production, business and domestic use and would be calculated to have a minimal impact on the poor, Deputy Minister of Trade and Industry Hoang Quoc Vuong said.

The detailed price list would be completed this week.

The average electricity price would increase by VND165 per kWh, from VND1,077 (US$0.05) per kWh to VND1,242 (US$0.06) per kWh.

The price plan was lower than the Ministry of Trade and Industry's proposed increase of 18-30.3 per cent, he said.

Viet Nam Energy Association Chairman Tran Viet Ngai said price rise was lower than that proposed by the association.

"The average electricity price should be VND1,500 (US$0.072) per kWh in order to help the power sector make a profit and attract investment," Ngai said.

"An increase of VND165 will not be enough to call for more foreign investment in the power sector in order to ease the current problem of capital and power shortages," Ngai said.

Source: VNS