Electricity price increases by 6.08 per cent from today

After three years, the government has decided to revise the retail price of electricity

Accordingly, the retail selling price of electricity has been adjusted after nearly three years of being kept at VND1,622 per kWh.

The selling price for specific customer groups will be calculated based on Decision No.24/2017/QD-TTg of the prime minister dated April 7, 2014 on the structure of the power tariff.

According to the Ministry of Industry and Trade (MoIT), the adjusted selling price of electricity this time is based on electricity production and trading costs and the business results of the electricity industry in 2016.

At present, electricity for household usage and industrial production is sold at different prices.

Notably, each kWh of electricity costs VND1,484 for the first 50 kWh used in a month. It then increases to VND1,533 per kWh until the 100 kWh mark.

The unit price is VND2,587 for families that use over 400kWh a month. The price of industrial electricity goes from VND869-983 per kWh at normal times and VND2,459-2,735 per kWh during peak time.

Along with the information on the adjustment of the selling price of electricity, MoIT issued the 2016 production and trading costs as well as the business results of the power industry.

Accordingly, the total electricity production and trading costs in 2016 reached VND266.1 trillion ($11.7 billion), equivalent to VND1,665 per kWh in 2016.

Notably, VND203 trillion ($8.94 billion) of the VND266.1 trillion ($11.7 billion) was electricity generation cost, bringing electricity generation prices to VND1,270 per kWh. VND16.17 trillion ($711.88 million) was for electricity transmission costs (VND101.18 per kWh). Electricity distribution costs were VND45.85 trillion ($2.01 billion), equivalent to VND6.74 per kWh. The remaining costs were supporting-management expenditures.

Regarding the 2016 business results of EVN, which is currently the only electricity seller, representing for the electricity industry, in 2016, the total revenue from selling electricity was VND265.5 trillion, thus the company reported a massive loss of nearly VND600 billion ($26.1 million) for the whole year, however, its revenue from activities related to electricity production and trading reached VND3.15 trillion ($138.67 million), offsetting EVN’s losses and pushing EVN’s profit to VND2.65 trillion ($116.66 million).

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