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Businesses depressed about electricity price increases
Big electricity consumers have expressed their concerns about the electricity price increases suggested by the Electricity of Vietnam (EVN).
Do Duy Thai, General Director of Viet Steel Corporation, said an electricity price increase would make production costs higher. Thai said that an electricity price increase is unreasonable at this moment when Vietnam’s and the world’s economies are facing big difficulties, and commodity consumption has been going slowly, which has forced commodity prices down.
Thai added that the crude oil price has been decreasing and it is expected to see further decreases in the time to come, which has made electricity production costs lower. He said that it is really absurd if the prices of all commodities decrease but electricity increases.
Ngo Phuoc Hau, General Director of Agifish, shared the same view, saying that an electricity price increase seems to be contrary to the growing trend of input material price decreases in the world. Hau said that seafood processing companies now have to compete fiercely with world rivals, and that more expensive electricity would make them less competitive.
Tran Bao Minh, Deputy General Director of Vinamilk, said that if the electricity price increases as proposed by EVN, Vinamilk will have to spend VND6bil more a year. Minh said that it is necessary to set up a suitable itinerary for a price increase, so that businesses can adjust their production plans.
According to Bui Sy Hoang, Deputy General Director of Sawaco, the main producer and supplier of clean water for HCM City, Sawaco has set the water price for 2009, forecasting that the electricity price will be VND1,100/khwh on average. With that electricity price, in order to make one cu m of clean water, Sawaco has to pay VND610. However, EVN has suggested a 16% increase; therefore, the money Sawaco has to pay for electricity to make one cu m of clean water will be VND702. Electricity expenses account for nearly 10% of the company’s water production costs.
Hoang said that if the electricity price increases by 16%, the price of water will likely increase by 10% at least.
VNN
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