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Vietnam to Increase Electricity Prices Next Year - Vietnam Briefing News

Oct. 8 – The state-owned Electricity of Vietnam (EVN) has been tasked to submit plans to increase power prices gradually beginning next year.

EVN will be using the extra capital to invest in more power generation projects.

The Deputy General Director of EVN, Dinh Quang Tri, told media that the price hike should encourage local and foreign investment in the industry and lead to efficient use of power.

“The Ministry of Industry and Trade will coordinate with other ministries and sectors to decide the rate of the increase, its timing and implementation,” Minister of Industry and Trade Vu Huy Hoang told Thanh Nien News.

“The increase is unavoidable, because current electricity prices are lower than the sector’s input costs,” he said.

The government has told the Ministry of Industry and Trade to offer a complete restructuring of the sector from production, distribution, transmission and management.

Recently, EVN refused government proposals to invest in 13 electricity projects.

The country's power demand is projected to increase annually by 16 percent until 2015.