In a bid to improve the financial situation, Electricity of Vietnam (EVN) has recently once again proposed to increase the electricity price from August 1, according to the local newswire SGTT.
The pressure on hiking electricity price was mainly due to the EVN’s loss of eight trillion dong in 2010 and other losses such as debt for electricity purchase from Vietnam National Oil and Gas Group (PetroVietnam-PVN) with over 6.4 trillion dong and the debt of about one trillion dong with Vietnam National Coal and Minerals Industries Group (Vinacomin).
However, Tran Viet Ngai, chair of Vietnam Energy Association said that although the electricity price has been fixed in accordance with the market price, in the current context, the electricity price should not be raised and it will be very hard for EVN to persuade for electricity price hike, even the rise of only below 5 percent.
Ngai added that this year, electricity sector has many advantages thanks to the electricity production is mainly based on hydropower and thermo power plants. Meanwhile, the electricity price from hydropower and thermo power plants and electricity purchasing price from China are lower than the domestic electricity selling price. So, the electricity price rise at this moment is unconvincing.