Vietnam electricity price up 4.6% in 2012: minister

There are plans to increase electricity prices in Vietnam by 4.6% in 2012.

This was revealed by Finance Minister Vuong Dinh Hue to questions from a congressman in a testimony at the National Assembly about electricity price, petroleum and public investment.

According to Minsiter Hue, Vietnam Electricity Corporation incurred VND23.5 trillion loss in 2010, of which VND8.04 trillion loss from electricity business and VND15.463 trillion loss from exchange rate difference. EVN is further estimated to run a loss of VND3.45 trillion in 2011, decreasing 68.6% the earlier’s year plan of VND11 trillion, the Minister added.

Electricity price in 2012 will be calculated on the production electricity price in 2011, excluding EVN’s profits excluded; applying exchange rate difference on September 15, 2011; keeping coal selling price for EVN at 57-63% consumption price, purchase contracts remained as present.

Of note, the electricity price for 2012 will be added one-fourth of 2010’s loss and one-third of exchange rate difference in 2010.