Photo: evnspc.vn

Electricity prices will be increased by 7.5 percent to an average of 1,622.05 VND per kWh from March 16, as approved by Prime Minister Nguyen Tan Dung at a Government meeting in Hanoi on March 5.

The Cabinet leader, his deputies, and the Ministers of Industry and Trade, Planning and Investment, and Finance agreed on the rise after considering price adjustment options proposed by the Ministry of Industry and Trade and the Electricity of Vietnam Group (EVN).

The 7.5 percent increase will help EVN avoid and compensate for losses (about 8 trillion VND or 380.95 million USD at present) from exchange rate disparities in recent years. If the price of electricity is not adjusted, EVN’s losses would exceed 12 trillion VND (over 571.42 million USD) in 2015.

Meanwhile, the price hike is also expected to help Vietnam achieve a GDP growth rate of 6.2 percent while reining in inflation rate at about 5 percent.

On behalf of Government permanent members, PM Nguyen Tan Dung asked EVN to improve its business and production efficiency to reduce electricity loss to 8 percent this year from 8.49 percent in 2014 as well as raise its labour productivity by over 9 percent.

Source: VNA