Electricity rates to increase to VND 842 per kWh from January 1, 2007

At the regular cabinet meeting for November, the government approved a plan on increasing electricity prices for the 2006-2010 period presented by the Ministry of Industry.

Electricity rates adjustment plan will be road mapped in three stages.

During the first stage, to be implemented from January 1, 2007, electricity rates will be increased on average to VND 842 per kWh, an increase of 7.6% over the current price.

In the second stage, to be implemented from January 1, 2008, electricity rates will be increased to VND 890 per kWh, an increase of 5.7% against the rates applied in stage 1.

The third stage starts from 2010, electricity prices will be adjusted according to the changes of the electricity generating prices defined on the competitive electricity generating market.

Under the plan, the price of the first 100 kWh will be maintained at VND 550 per one kWh. The wholesale electricity price for rural areas will also be maintained at VND 390 per kWh. The ceiling price on consumer electricity rates in rural areas will remain unchanged, at VND 700 per kWh. There will be an increase of 20% during peak using hours.

(Source: Nhandan)