Electricity price may increase by 143.79 VND/kWh in March
The Ministry of Industry and Trade has officially submitted a plan to increase the average retail electricity price by VND143.79 to VND1,864.44/kWh (an increase of 8.36%) and ensure "no impact on CPI and GDP".
According to the recent report on the electricity price management scenario in 2019 by the Ministry of Industry and Trade: Based on input factors, the average retail electricity price in 2019 is expected to increase by about 8.36% compared to the current average electricity price (1,720.65 VND/kWh), equivalent to an average retail electricity price in 2019 of about 1,864.44 VND/kWh.
Thus, the average retail electricity price is expected to increase by 143.79 VND/kWh.
The Ministry of Industry and Trade will report to the Prime Minister for permission to adjust retail electricity prices during the period from March 20 to 30.
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The average retail electricity price is expected to increase by 143.79 VND/kWh in March 2019. |
Regarding the reasons for the increase in electricity prices, the Ministry of Industry and Trade analyzed a series of factors affecting the 2019 electricity price. Specifically, regarding the input factors of the 2019 electricity price: Domestic coal prices have been adjusted in step 1 with an average increase of 5%, increasing the cost of purchasing electricity by about 3,183 billion VND; the price of coal mixed with imported coal produced domestically from January 16 is higher than the price of domestic coal, increasing the cost of purchasing electricity by about 1,921 billion VND...
The 2019 electricity price plan also includes fuel costs that the Government allows to be adjusted synchronously when adjusting electricity prices, such as: Domestic coal prices sold for electricity production adjusted in step 2 according to the increase according to the roadmap approved by the Government. At that time, the cost of purchasing electricity will increase by about 2,230 billion VND.
In addition, gas prices of some power plants will be adjusted, thereby 100% of gas turbine plants will purchase gas at market prices. This adjustment of gas prices in the market-based purchase agreement will increase the cost of purchasing electricity by about VND 5,852 billion.
In addition, the 2019 electricity price plan also includes in the calculation of exchange rate difference costs that have not been included in the electricity price.
Deputy Minister of Industry and Trade Hoang Quoc Vuong said: The increase in electricity prices caused the Consumer Price Index (CPI) in 2019 to increase by 0.29%, which has a very real impact on our economy. The increase in the price of any commodity affects the CPI, and more or less affects GDP. In the long term, we need an electricity industry with healthy financial capacity to be able to invest in electricity projects, to have electricity for other economic sectors to develop.
“Because if there is no electricity, the impact is even greater than the increase in electricity prices. Increasing electricity prices reduces GDP by 0.22%, but if there is no electricity, it could decrease by several percent. That is something we have to consider to have a stable electricity industry,” Mr. Vuong said.
