HA NOI — Electricity rates will rise when coal prices begin to be set under a market principles this year, the deputy director of the Electricity Regulatory Authority of Viet Nam, Dinh The Phuc, said on Monday.
In a press conference held by the Ministry of Industry and Trade in Ha Noi, Phuc said the Ministry of Finance would apply market principles to set coal prices this year, but the Electricity Regulatory Authority had not yet received any official documentation establishing procedures for increasing the prices.
Deputy Minister of Industry and Trade Nguyen Nam Hai said that electricity was a backbone of the economy, requiring rates to be increased incrementally under a roadmap so as not to cause dramatic disruptions to industry or people's lives.
Phuc confirmed that input materials prices were one of three factors that wousld be used to adjust electricity rates pursuant to Prime Minister's Decision No 24, issued last April.
Under that decision, the period between two consecutive electricity rate increases must be at least three months. After three months, if the increase in input material prices would affect overall electricity rates by less than 5 per cent, the increase in rates would not be approved.
Coal prices for steel and cement would still be set under a special price regime that would take into account difficult economic circumstances, e.g., high interest rates.
Addressing power supplies generally, Phuc said, barring unusual fluctuations in hydrography, the power sector would be able to guarantee adequate electrical supplies this year.
However, power supplies for Ha Noi this year would face some challenges due to obstacles in land clearance for an electricity transmission-line construction project.
Electricity of Viet Nam (EVN) and the EVN Ha Noi Corporation.
Yesterday met with the Ha Noi People's Committee to discuss measures to accelerate land clearance for power projects, Phuc said. — VNS