The Vietnam Energy Association has asked the Government to raiseelectricity prices next year, retaining subsidies only for poor andpeople covered by special Government policies.
Thebusiness group wants the tariff to be raised to 1,500 VND (0.07 USD) perkilowatt-hour from the current 950 VND for all middle and upper-incomeconsumers while keeping it at 600 VND for the first 50kWh for thesubsidised categories of consumers.
Currently the subsidised price applies to all categories.
The VEA also proposed setting up a corporation to oversee electricity prices for subsidised consumers.
It said the current price of 950 VND, or 0.5 cents, is too low toattract investors to the electricity industry. A price of 7 to 8 centsis considered profitable.
In the first six monthsthis year, the State-owned Electricity of Vietnam (EVN) produced 27.6billion kWh and bought another 18.36 billion kWh from outside producers,making a loss of 3 trillion VND (150 million USD) in the bargain.
The EVN can meet only 30 percent of the investment needed to buildpower plants and distribution systems while there has been no foreigninvestment in build-operate-transfer projects since 1997.
The VEA also urged the Government to increase the prices of gas and coal.
"There is no reason for electricity prices to rise at this time sinceinput costs are stable," Nguyen Van Be, general director of the Sai Gon –Linh Trung Processing Zone, said.
"In fact, the current tariffs are too high."
"Local businesses are trying to overcome the consequences of financialcrisis. If VEA's price increase is approved, normal life and businessoperations will be hit severely."
Nguyen Hai Trieu,general director of Northern Viking Technologies company, said theelectricity industry's stock answer for increasing tariffs was that theywere lower than in neighbouring nations.
"However, the industry can [afford to] pay thousands of billions of dong in bonuses to their staff each year.
"Many companies using a lot of electricity, like in manufacturing andseafood, will have to stop operating because right now we hope to make asmall profit of 1 – 2 percent."
Hoang Van Tieu,director of the Rong Vang Construction Consultancy Company, said: "Toincrease the tariffs, the power sector should set out a clear road map.
"The industry must improve labour productivity and cut costs."
He asked the Government to study the impact of increasing the tariffs on all sections of society./.
Thebusiness group wants the tariff to be raised to 1,500 VND (0.07 USD) perkilowatt-hour from the current 950 VND for all middle and upper-incomeconsumers while keeping it at 600 VND for the first 50kWh for thesubsidised categories of consumers.
Currently the subsidised price applies to all categories.
The VEA also proposed setting up a corporation to oversee electricity prices for subsidised consumers.
It said the current price of 950 VND, or 0.5 cents, is too low toattract investors to the electricity industry. A price of 7 to 8 centsis considered profitable.
In the first six monthsthis year, the State-owned Electricity of Vietnam (EVN) produced 27.6billion kWh and bought another 18.36 billion kWh from outside producers,making a loss of 3 trillion VND (150 million USD) in the bargain.
The EVN can meet only 30 percent of the investment needed to buildpower plants and distribution systems while there has been no foreigninvestment in build-operate-transfer projects since 1997.
The VEA also urged the Government to increase the prices of gas and coal.
"There is no reason for electricity prices to rise at this time sinceinput costs are stable," Nguyen Van Be, general director of the Sai Gon –Linh Trung Processing Zone, said.
"In fact, the current tariffs are too high."
"Local businesses are trying to overcome the consequences of financialcrisis. If VEA's price increase is approved, normal life and businessoperations will be hit severely."
Nguyen Hai Trieu,general director of Northern Viking Technologies company, said theelectricity industry's stock answer for increasing tariffs was that theywere lower than in neighbouring nations.
"However, the industry can [afford to] pay thousands of billions of dong in bonuses to their staff each year.
"Many companies using a lot of electricity, like in manufacturing andseafood, will have to stop operating because right now we hope to make asmall profit of 1 – 2 percent."
Hoang Van Tieu,director of the Rong Vang Construction Consultancy Company, said: "Toincrease the tariffs, the power sector should set out a clear road map.
"The industry must improve labour productivity and cut costs."
He asked the Government to study the impact of increasing the tariffs on all sections of society./.
