The Hanoitimes - The move is necessary for Vietnam Electricity to cover an incurred cost of VND20.73 trillion (US$892.18 million) in the 2018 - 2019 period, stated the Ministry of Industry and Trade (MoIT) on its website.
Power prices in Vietnam would remain unchanged in the remaining months of 2018 following the instruction of Prime Minister Nguyen Xuan Phuc, however, it could go up in 2019, stated Deputy Minister of Industry and Trade Do Thang Hai.
The move is necessary for Vietnam Electricity, the sole distributor of electricity in the country, to cover an incurred cost of VND20.73 trillion (US$892.18 million) in the 2018 - 2019 period, Hai said at a meeting on September 28.
This include incurred costs of VND5.48 trillion ($235.92 million) this year and projected costs of VND15.25 trillion ($668 million) next year, Hai said.
Incurred cost this year includes exchange rate differences in 2017 of VND3.07 trillion ($132.13 million), payment for water resources exploitation of VND502 billion ($21.6 million), and higher gas prices VND1.91 billion ($82.18 million).
Projected incurred costs next year are based on exchange rate differences of VND3.51 trillion ($151.28 million) this year, exchange rate differences worth VND734 billion ($31.58 million) in 2015 scheduled to be paid next year, payment for water resources exploitation of VND502 billion ($21.6 million), and increase in gas costs of VND10.5 trillion ($451.79 million).
Hai added that the MoIT is currently working with related government agencies to review EVN's electricity production costs in 2017, which will be used as a basis to adjust the power prices in 2019.
The most recent power price increase in Vietnam was last December, when it rose 6.08% to VND1,720.65 (currently 7.4 cents) per kWh.
The EVN reported an after-tax profit of VND1.01 trillion (US$43.21 million) in the first half this year, down 31.5% year-on-year. For 2018, the EVN set revenue target of VND328.9 trillion (US$14.13 billion), up 8.8% year-on-year, and VND117.84 trillion (US$5.06 trillion) for investment.
With regard to the equitization process of EVN's subsidiaries, namely Power Generation Corp. 1 and 2 (Genco 1and Genco 2), the process is scheduled to start on January 1, 2019, subject to the prime minister's approval.
In the remaining months of 2018, EVN will withdraw all capital from affiliates such as Finance Joint Stock Company, Thu Duc Electro Mechanical Joint Stock Company, Dong Anh Electrical Equipment Corporation - Joint Stock Company, Thuan Binh Wind-Power Joint Stock Company, Power Engineering Consulting Joint Stock Companies 3 and 4.