Electricity price adjustment increases consumer benefit

Electricity price adjustment increases consumer benefit - 

The electricity price was adjusted on June 1 in favor of individual and organization consumers, with the average price (VND1,508.85/kWh) kept unchanged.

Keeping the average electricity price unchanged

Ministry of Industry and Trade's Electricity Regulatory Authority (ERA) Deputy Director Dinh The Phuc said that the power price was adjusted according to Ministry of Industry and Trade Decision 4887/QD-BCT to implement Prime Ministerial Decision 28/2014/QD-TTg (referring to retail prices of electricity).

The retail price of electricity with a voltage of less than 6kV, from 6kV to less than 22kV, from 22kV to less than 110kV and from 110kV upward for production industries during off-peak hours increased by one percent compared to the average price (VND1,508.85/kWh), while the retail price of electricity with a voltage of 22kV upward during normal, off-peak and peak hours for trading activities will decreased 5, 3 and 8 percent respectively compared to the average price. The retail price of electricity for domestic use also decreased, especially that for bills with a low level of consumption.

The new electricity price regulation made identical electricity prices in different regions nationwide, including remote, island regions. The state is investing to make the national grid reach island communes, creating conditions for island residents to develop production and trading activities and improve living standards and contributing to promoting marine and island economic development pertaining to protecting the country’s sovereignty and security.

Households as social policy beneficiaries, which are not poor households and consume less than 50kWh of electricity per month can have their electricity use charge supported by the state. Poor households can have use charge for 30kWh of electricity per month supported by the state and are subject to the grade-1 electricity price.

Encouraging electricity efficiency

Experts from Poland said at a recent seminar on the competitive electricity production market in Hanoi that the electricity efficiency in Vietnam remains low; electricity losses remained large due to substandard infrastructure and the fact that people in rural areas still caused big electricity losses; many businesses kept using outdated equipment and machinery, which caused the electricity cost to increase. Power losses were also seen in state administrative organizations, public sites and out on the streets, among other sites.

For many years, the electricity sector has been promoting electricity efficiency with different measures throughout production, service, trade, school, residential and other areas. According to the Electricity of Vietnam (EVN), more than five billion kWh of electricity was save in 2006-2010 and another 2.8 billion kWh of electricity worth trillions of dong was saved in 2013.

Source: VEN

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