EVN: Proposes to raise electricity tariff to 917 dongs

 According to the roadmap ratified by the Government, the average retail price which in applied since July 2008 will be 890 dongs/kWh, a 30 dong increase compared to the current price. However, EVN proposed the second strategy in which the average retail price of electricity will rise to 917 dongs/kWh because of the higher input costs, including fuels, gas oil, cement, iron and so on.

The electricity tariff is constructed based on the internal diagonal compensation basis between the production block and other blocks. Therefore, retail electricity price for production will increase from 857 dongs to 917 dongs per kWh on the average, which is a 7% increase.

In terms of electricity for everyday life’s activities, the electricity tariff will be calculated in accordance with new ladder steps with the rise of 10.4%, that is, from 862 dongs to 952 dongs per kWh. The first 50 kWh retains the ladder steps after the increase of about 14%.

It can be seen from EVN’s statistics that among more than 10 million households using power, there are 1.137 million ones recorded at just under 30 kWh a month, 1.2 million ones from 30 kWh to 50 kWh, and other 4 million ones from 50 kWh to 100 kWh.

In other words, the rate of poor families using power with just below 30 kWh/month is 11.18% and that with 30 – 50 kWh is another 12%, so these customers account for roughly 23% of all service users. According to EVN, the division into two ladder steps still ensures that poor families will not be affect by the higher price of electricity because the electricity tariff for the first 50 kWh will remain stable at 550 dongs/kWh.

EVN recommended that the Ministry of Industry and Trade should approve this strategy so that it can be implemented from July 1^st 2008 to December 31^st 2009 as planned. After that EVN will calculate the price for the next period in line with the market price.

Ladder steps of electricity tariff for everyday life’s activities proposed by EVN:

From VnExpress