Feb. 16 – New electricity rates will be applicable beginning March 1 at an average rate of VND948.5/kWh, an increase of 8.92 percent.
Vietnam has announced that for marginalized households and low-income families, costs will be subsidized by the state.Thirty five to forty percent of the price for the first 1 to 50kWh used will be subsidized while those using 51 to 100kWh will be charged the average price.
The new rates are applicable to those subscribing power from the national grid.
Power traders in the rural areas not able to sell electricity at the new prices will be allowed to maintain their current rates VND700/kWh until September.
Areas not connected to the national grid will have their retail prices set by the provincial people’s committees pending approval from the Ministry of Industry and Trade.
The Ministry of Industry and Trade along with the Ministry of Finance will now hold the authority to adjust prices of less than percent annually depending on the market. Otherwise, price adjustments of more than 5 percent will need approval from the Prime Minister.
Starting 2010, ceiling prices will be set for the production and service sectors to allow electricity companies to sell power at prices below it.
