Proposed scenario for electricity price adjustment

Deputy Prime Minister Vuong Dinh Hue has just requested the Ministry of Industry and Trade to preside over and guide the Electricity Corporation (EVN) to propose a scenario for electricity price management in 2017 before March 25.

The above content was stated in the conclusion announcement of the Deputy Prime Minister at the meeting on the 2017 electricity price plan held at the end of February.According to this request,Electricity prices will be built according to coal and gas price scenarios and include exchange rate differences that have not been processed according to specific mechanisms and prescribed accounting standards.

Ministry of Industry and Trade, EVN are also requiredreview investment plan, a method of capital mobilization to determine sources for production and business activities with the goal of reducing 7.5-10% of the group's regular costs.

The 2017 electricity price scenario will be submitted to the Government at the end of March.

The Electricity Group must also review sales contracts, especially with independent power plants (IPPs) or BOTs, propose solutions to handle cases beyond its authority and report to the Prime Minister in May 2017.

The most recent electricity price adjustment was nearly 2 years ago (March 2015) with the average retail price being 1,622.01 VND per kWh, an increase of 7.5%.

At the 2017 Task Deployment Conference held in early February 2017, EVN leaders also revealed that the group is facing difficulties due to the increase in prices of some input materials, mainly coal, causing production costs in 2017 to add nearly 4,700 billion VND.

According to VNE