VN plans to adjust electricity price along a market-based roadmap
VGP – The Ministry of Industry and Trade just informed that the electricity price will be adjusted in line with the market mechanism and along a proper roadmap. The Government will decide how and when to conduct the adjustment.
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Minister of Industry and Trade Vũ Huy Hoàng: Market-based adjustment of electricity price is inevitable - Photo: VGP |
At present, Việt Nam is still applying the price list based on the 2005 price index. The fact that electricity price has experienced no adjustment during the past three years is inappropriate to requirements of a market economy. So "the market-based adjustment of electricity price is inevitable in the time to come", said Minister of Industry and Trade Vũ Huy Hoàng.
As a means to curb inflation and stabilize price, the Vietnamese Government decided not to raise electricity price in 2008. In reality, the current selling price is much lower than cost price and the average price.
Thus, in the coming time, the power price list will be readjusted so as to form an electricity market and ensure financial conditions and development of the power sector. The adjustment is scheduled to be conducted next year, the Minister revealed.
He emphasized that the adjustment must help to gradually eradicate subsidies for production activities and encourage the economical use of electric power in production and consumption. The electricity price must reflect production costs and bring about profits to power producers and traders for their re-investments. The State pledges to continue assisting poor and low-income users as well as those living in rural areas, the Minister asserted.
"The Government pays special attention to do adjustment reasonably to minimize negative impacts on consumption price index, people’s livelihood and production," Minister Hoàng concluded.
By Hoàng Nguyên
