Vietnam’s EVN eyes electricity rate hike as coal costs rise

Vietnam’s EVN eyes electricity rate hike as coal costs rise

The request suggests an increase of at least 5% as it heads toward a US$1.3 billion loss.

Coal is the leading fuel for state-run Vietnam Electricity Group’s power plants. (EVN pic)
HANOI:
Vietnam Electricity Group, known as EVN, wants to raise customer rates in 2023 as the growing costs of power generation strain the state-run utility.

EVN has filed a proposal for a rate hike with the ministry of industry and trade, local media report, seeking what would be the first major price adjustment since March 2019.

The scale of the proposed increase has not been disclosed. But EVN is required to consult the ministry when considering a rate hike of 5% to 10%.

EVN is expected to incur a loss of roughly 31 trillion dong (US$1.29 billion) for 2022, hurt by surging costs of coal, its main fuel.

The utility is permitted to hike rates from 3% to 5% at its own discretion. An increase of 10% or more requires approval from the prime minister.

The government is now considering the size and timing of the proposal.

Vietnamese inflation is expected to remain under the government’s target of 4% or less for 2022. But Hanoi is on guard after the consumer price index jumped faster than 4% in November.

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