Electricity price increased by 4.5%, to more than 2,000 VND/kWh from today

After increasing by 3% in May, from November 9, each kWh of electricity will increase by 4.5% to VND2,006.78 (excluding VAT).

According to information from Vietnam Electricity Group (EVN) on the afternoon of November 9, the average electricity price increased from VND1,920.37 to VND2,006.78 per kWh (excluding VAT), equivalent to an increase of 4.5%. This decision has been approved in principle by the Government and the Ministry of Industry and Trade.

This is the second time this year that electricity prices have been adjusted. The last time was in May when it increased by 3%.

Power workers repair power lines. Photo: Nguyen Thanh

With current input fuel costs, according to EVN's calculations, the production cost per kWh is about 2,098 VND, which is nearly 180 VND per kWh higher than the average retail price maintained from May until now (1,920.37 VND).

Fuel prices (coal, gas, oil) for electricity production decreased compared to 2022 but remained high. Specifically, imported coal prices increased nearly 3 times compared to 2020; over 1.3 times compared to 2021. Oil prices also increased approximately 2 times in 2020 and over 1.1 times in 2021.

Meanwhile, the price of blended coal purchased from TKV increased by 29.6-46%, and from Dong Bac Corporation by 40.6-49.8% depending on the type compared to 2021. Similarly, the price of electricity purchased from gas turbine power plants also increased, due to a sharp decrease in Nam Con Son gas volume. These factors pushed up the cost of coal and gas turbine power sources, while the proportion of these sources accounted for 55% of the total electricity output of the system.

Last year, the group recorded a loss of more than VND26,000 billion, after cutting costs by more than VND10,000 billion. In a recent report by the Ministry of Planning and Investment, EVN's loss increased by about VND28,000 billion in 8 months.

According to VNE

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