Cheap power source not to pull Vietnam electricity prices down

The Electricity of Vietnam will have to complete recalculating electricity production cost before October 1, 2012 to propose pricing plan.

In the past 2 months, EVN were able to buy cheap electricity from hydropower plants, accounting for nearly 50% of total electricity purchased, as water levels rose.

However, “it does mean that retail electricity prices will fall because we have to calculate electricity prices in dry seasons too. Therefore, higher electricity output from hydropower plants in July and August is not the reason to adjust retail electricity prices”, explained Dang Huy Cuong, director of electricity regulating department at the Ministry of Industry and Trade.

Cuong shared that adjusting electricity must be based on 2012 whole-year prices of real production cost of all processes: power transmission, distribution and retailing.

“EVN will calculate total production cost and fee for a commercial 1kWh electricity versus generating cost of commercial 1kWh electricity together with considering previous years’ performances to be able to propose adjusted electricity prices” Cuong said.

Earlier in July 1, 2012 EVN raised electricity prices by 5%. And under Vietnam’s law, electricity prices can be adjusted every 3 months, therefore EVN must complete recalculating electricity production cost before October 1, 2012.

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