Vietnam Electricity (EVN) on Thursday raised the country’s average retail electricity price by 3%, the first hike since March 2019.
The Ministry of Industry and Trade on April 27 allowed EVN to do this. According to the ministry, the state-run utility reported a total loss of more than VND26.2 trillion (almost $1.12 billion) last year, mostly due to electricity generation costs.
The newly-increased average price is VND1,920 ($0.08) per kilowatt hour, excluding value-added tax.
The ministry said the country’s electricity production costs rose 9.27% last year from a year earlier, to VND2,032 ($0.09) per kWh.
The new retail prices may place more pressure on inflation. The government is targeting average inflation of 4.5% for this year. Vietnam’s consumer price index in the four months increased by 3.84% year-on-year.