The price of electricity has been raised to an average 1,508.85 VND per kWh (exclusive of value added tax) starting August 1, an increase of 71.85 VND (5 percent).

The move was announced by the Ministry of Industry and Trade on July 31.

The new electricity price will range from 993 VND per kWh (0.046 USD) to 2,420 VND per kWh (0.1142 USD) for households.

The adjustment aims to partly compensate for the increased cost of power generation caused by increased coal and gas prices.

Poor and low-income households that use 0 to 50 kWh per month will be charged the same amount (993 VND) as before but households that use 100-400 kWh per month will be charged an additional 6,800 VND to 37,000 VND per month.

The last electricity price rise was on December 22 last year, with an increase of 5 percent (or 68 VND per kWh) to 1,437 VND per kWh.

The latest rise is expected to cause concern among the public and businesses, many of which are struggling to cope with the economic recession.-VNA