Electricity prices to increase by 20pct in early 2009

The Prime Minister has agreed to increase electricity prices in early 2009, according to the Minister of Industry and Trade (MoIT) Bui Xuan Khu.

Mr Khu says the MoIT has submitted a proposal to increase the price of electricity by 20 percent.

Mr Khu says that electricity prices in Vietnam are now lower than in other countries in the region that have not encouraged investors to get involved in power projects. He explains that in recent times, the price of electricity has been maintained to curb inflation. As inflation is beginning to fall in the country, Prime Minister Nguyen Tan Dung has ordered an increase in price of electricity as of 2009, which is expected to be on a par with other countries in the region by 2010. Mr Khu says that hard up households will receive support from the State.

According to Mr Khu, the price of electricity is expected to increase by a minimum of 20 percent and a maximum of 30 percent in the 2009-2010 period. Therefore, the MoIT has proposed increasing electricity prices in four phases to come into line with other countries in the world. The government will consider thí proposal and make their decision at a later date.

Currently, electricity prices are around VND850 per kwh.

VOV

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