Vietnam power prices to remain unchanged

The Electricity of Viet Nam (EVN) and the Viet Nam Coal and Mineral Industries Group (Vinacomin) have assured electricity prices will remain unchanged until the end of the year.

The commitment was made following public concern about the possible electricity price hike after these groups reported a loss caused by fluctuations in foreign exchange rates.

Earlier this month, three large conglomerates of the Ministry of Trade and Industry, including EVN, Vinacomin and the Viet Nam Oil and Gas Group (PVN) reported losses of trillions of dong as a result of changes in foreign exchange rates.

EVN reported losses of around VND12 trillion (US$53.2 million) while Vinacomin reported losses of around VND1.6 trillion ($71 million).

These groups said they had borrowed large amounts of foreign exchange to invest in big projects.

EVN supplies 50 per cent of total power required in the country while Vinacomin was the third largest power supplier in Viet Nam, accounting for six per cent of total output.

However, Deputy Director General of EVN Dinh Quang Tri told Viet Nam Television (VTV) yesterday that the electricity price would be kept unchanged from now until the end of the year.

The group earlier proposed that the government put in place measures such as tax reductions and relaxations to support businesses, as well as policies to help them tackle the problems arising out of foreign exchange fluctuations.