Keep power cost stable: Deputy PM
EVN Hà Nội workers install a counter in Thường Tín District, Hà Nội. — VNA/VNS Photo Ngọc Hà
HÀ NỘI — Deputy Prime Minister Vương Đình Huệ has asked the Ministry of Industry and Trade (MoIT) to calculate retail power price adjustments every six months instead of three as it proposed.
In a draft revision of a Government decision on power price adjustment, the MoIT proposed an adjustment period of every three months instead of the six months implemented since 二0 一 三. However, after discussions with involved parties, the Deputy PM asked to maintain the current adjustment mechanism to ensure macro-economic stability.
The Deputy PM asked the MoIT to team up with the Ministry of Finance and Việt Nam Electricity Corporation (EVN) to review and finish the draft on average electricity retail prices and submit it to the Prime Minister next month.
Earlier, the Deputy PM asked the MoIT and EVN to draft a report, including production and business activities, expenses, production costs and selling price in 二0 一 六, as well as a plan for 二0 一 七. He requested them to submit their proposals by March 二 五.
But a power rate hike for consumers appears likely in the coming months, given that there was no adjustment in 二0 一 六 and the last power tariff hike was in March 二0 一 五, when it increased 七. 五 per cent.
An EVN representative told media that the power retail price would depend on the price of coal the company buys. The Government has asked the Finance Ministry to negotiate with the Việt Nam National Coal and Mineral Industries Group (Vinacomin) over the coal prices sold for electricity production. The negotiation results must be submitted to the Government by the end of this month.
Đặng Hoàng An, EVN’s general director, said the input cost for electricity production had increased since 二0 一 五, with coal prices up 七 per cent since December 二 四, 二0 一 六, and electricity production costs surging by over VNĐ 四. 七 trillion (US$ 二0 六 million).
However, the increase had not been included in the current power retail tariffs.
Nguyễn Ngọc Hưng from the Energy Institute told news site Vietnamnet.vn that the electricity demand and material prices could affect power tariffs this year. Hưng said the higher power retail prices were due to increasing demand, which rises 一 一- 一 二 per cent a year. In addition, the country had seen development of thermo-hydropower and gas turbine power plants instead of hydropower plants – the cheapest electricity resource.
"That is the reason a rate hike is unavoidable,"大众he said.
Coal prices have a major effect on power tariffs as thermo-power plants account for the biggest chunk of the country’s supply.
EVN said its power output bought from power plants in the last quarter of 二0 一 六 included 二 六 per cent of hydropower, 四0 per cent of thermo-power and 三 一 per cent of gas turbine power and other.
Hưng said it was estimated that if coal prices for electricity production rose by 一0 per cent, the power generation cost would increase by 三- 四 per cent. — VNS
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