Vietnam Electricity (EVN) is going to seek the Government’s approval for two more power price hikes from now to the year’s end with the increase level of 5% each, said deputy general director Nguyen Tan Loc of the state utility.
Speaking to the Daily at the review conference on power saving in HCMC last Friday, Loc said the industrial manufacturing sectors are consuming as much as 47% of the total power output, especially steel and cement. Meanwhile, the prices of power sold to steel and cement production are currently lower than the average electricity prices by some VND160-195 a kilowatt.

EVN has been allowed to delay its debt payment to Vietnam Oil and Gas Group (EVN) and Vietnam Coal and Mineral Industries Group (Vinacomin) worth trillions of dong until the next price hike.

Speaking at the review conference, Loc recommended the Government to revise up the power tariff to match the cost, but price support for poverty-stricken and low-income households will remain intact.

He also proposed the Government direct enterprises to innovate their production technology and equipment, especially with the power-consuming industries like steel, cement and chemicals, as well as prohibit imports of low-performing manufacturing equipments that consume a lot of electricity.

Another concern of the power sector is that after the recent gas price hike, consumers are switching to using electric cookers, putting more pressure on power generation.

Deputy Minister of Industry and Trade Hoang Quoc Vuong told the Daily that the Government has laid down as a policy that power, coal and fuel prices will be adjusted in accordance with the market prices in the coming time. The increase level and time will be considered thoroughly so as to improve the financial situation of the power sector as well as ensure macro-economic stability and tackle inflation.

“The power industry is reassessing all the input costs to determine how much the market prices have fluctuated, but there is no specific figure at present. We should keep in mind that the power sector still owes hefty debts in the two years 2010 and 2011, so if conditions allow in the coming time, power price hike should be approved to improve the financial situation of the industry,” Vuong said.

SGT