Power tariffs to be reduced as prices rise

Power tariffs will be reduced from the current six levels to three or even one level in the future, Minister of Industry and Trade Vu Huy Hoang said.
Power tariffs will be reduced from the current six levels to three oreven one level in the future, Minister of Industry and Trade Vu HuyHoang said.

Reports from the Electricity of Vietnam (EVN) showedthat power consumption in the period from April to June posted over 10percent year-on-year increase due to abnormally hot weather and drought,resulting in the rise of household electricity bills.

The newpower selling tariffs which were applied since March 16, 2015, alsoattributed to the surge of 1.5 to 3 times in power bills.

Hoangsaid the power tariff calculation and the tariff levels have seenshortcomings. For a normal household, the electricity bill rising from200,000 VND to 300,000 VND to more than 1 million VND a month, would be aconsiderable expense.

Sharing the ideas, Deputy Minister HoangQuoc Vuong said according to the current power tariff structure, if ahousehold consumed over 400kWh, the power tariff would be 1,000 VND akWh higher than the average level. That was the reason why high powerconsumption in summer has sent electricity bills surging. The currentpower tariffs have several different levels which having moreconsumption that would result in a hike in the bills. However, thiscalculation has not convinced consumers.

With regard to powerbills and data collection from electricity meters, a representative fromthe Electricity Regulatory Authority of Vietnam (ERAV) said they askedthe EVN to check and supervise power supply. The power sector receivedaround 2,500 to 3,000 comments from customers in a month, of which 200to 300 comments were for power bills. After check-ups, customers wouldreceive answers from the EVN.

Deputy Minister Vuong said thecalculation that stipulates "more the consumption, more the payment" wasnot suitable as the current power tariffs had earned a profit for thecompany. The tariff hike, therefore, could not be blamed for encouragingconsumers to adopt power saving measures.

He wanted the ERAV tostudy how they could reduce the number of power tariff levels as well asreduce the difference between levels.

Minister Hoang also askedrelevant agencies to change the tariffs as they had not been reasonablein the current situation. He urged them to apply one level across allconsumption levels in the future.

The ERAV said power tariffswould be shortened from the current six to three levels. This would makeelectricity consumption calculations less complicated, benefitcustomers and make it easier for the management agencies.-VNA

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