Electricity price increased by 65 VND/kWh from July 1

The new average electricity price is 1,369 VND per kWh (excluding VAT), an increase of 65 VND compared to the current average price.

Electricity prices rise as the consumer price index hits record lows, but people's purchasing power falls sharply as the economy slows.

The above announcement was issued by Vietnam Electricity Group (EVN) on the evening of June 29, after the Ministry of Industry and Trade issued Circular No. 17/2012/TT-BCT regulating electricity prices and implementation instructions in the afternoon of the same day.

Vietnam Electricity Group said that after the price increase, EVN's electricity sales revenue is expected to increase by VND3,710 billion, equivalent to commercial electricity output from July 1 to December 31 of 56.8 billion kWh. In particular, the price of household electricity from 0 to 50 kWh applied to poor households and low-income households will not be adjusted, remaining at VND993.

EVN believes that the adjustment of electricity prices on July 1st has a small impact on production, business activities and people's lives. Poor households and low-income households using up to 50 kWh of electricity per month are not affected because the electricity price remains the same. Households using 100 kWh of electricity per month will increase their spending by VND4,200 per month, using 150 kWh will increase their spending by VND8,600, using 200 kWh will increase their spending by VND14,050, using 300 kWh will increase their spending by VND26,050, using 400 kWh will increase their spending by VND38,950.

The decision to increase electricity prices was made in the context of EVN's losses and debts to partners of thousands of billions of dong. At this time, the consumer price index is also at a record low in the past 38 years. Some opinions say that we can take advantage of this context to reasonably adjust the prices of essential goods that have been suppressed for a long time. However, many experts warn that the current negative CPI is mainly due to people's purchasing power being exhausted due to economic downturn and declining income of each family. Along with the increase in electricity prices, the basic input parameters used to calculate electricity prices applied from July 1 have also changed.

According to Express-M