The 7.5 percent increase in electricity prices from March 16 is forecastto raise this year’s consumer price index (CPI) by 0.23 percent, saidNguyen Anh Tuan, Director General of the Ministry of Industry andTrade’s Electricity Regulatory Authority.
The hikewill translate into an additional 4,800 VND (0.22 USD) for eachhousehold consuming 50 kWh of power a month, while those using 100 kWh amonth will pay about 9,800 VND (0.46 USD) more, he said.
Tuan added since the price rise will affect low-income anddisadvantaged families, State financial support for the electricitybills of these households will be increased by 153 billion VND (7.28million USD) a year from the current 1 trillion VND (47.61 million USD).
A survey by Vietnam News Agency reporters showsthat the price augmentation will have its largest impact on bigpower-consuming industries.
Truong Quoc Huy, GeneralDirector of the Vicem But Son Cement Joint Stock Company, said his firmuses about 100 kWh of electricity to produce one tonne of cement. Sincepower prices for manufacturing are higher than those for households,the power price hike will likely affect production costs and sellingprices.
Electricity expenses account for about 7percent of steel billet production costs. Between 400 and 600 kWh ofpower are needed to produce one tonne of steel billet, according toChairman of the Vietnam Steel Association Ho Nghia Dung.
He estimated the 7.5 percent hike will raise steel production expensesby 80,000-100,000 VND (3.75-4.68 USD) per tonne, adding that it will bea burden for steel makers amid an a array of challenges such asdecreasing prices of steel billet from China and Japan.
Vu Ngoc Bao, Vice Chairman and General Secretary of the Vietnam Pulpand Paper Association, said the power price escalation will cause a0.5-0.8 percent rise in the industry’s manufacturing costs.
Huy and Bao suggested businesses minimise other expenses and consideraccepting a profit decline to account for the power price increase.-VNA
The hikewill translate into an additional 4,800 VND (0.22 USD) for eachhousehold consuming 50 kWh of power a month, while those using 100 kWh amonth will pay about 9,800 VND (0.46 USD) more, he said.
Tuan added since the price rise will affect low-income anddisadvantaged families, State financial support for the electricitybills of these households will be increased by 153 billion VND (7.28million USD) a year from the current 1 trillion VND (47.61 million USD).
A survey by Vietnam News Agency reporters showsthat the price augmentation will have its largest impact on bigpower-consuming industries.
Truong Quoc Huy, GeneralDirector of the Vicem But Son Cement Joint Stock Company, said his firmuses about 100 kWh of electricity to produce one tonne of cement. Sincepower prices for manufacturing are higher than those for households,the power price hike will likely affect production costs and sellingprices.
Electricity expenses account for about 7percent of steel billet production costs. Between 400 and 600 kWh ofpower are needed to produce one tonne of steel billet, according toChairman of the Vietnam Steel Association Ho Nghia Dung.
He estimated the 7.5 percent hike will raise steel production expensesby 80,000-100,000 VND (3.75-4.68 USD) per tonne, adding that it will bea burden for steel makers amid an a array of challenges such asdecreasing prices of steel billet from China and Japan.
Vu Ngoc Bao, Vice Chairman and General Secretary of the Vietnam Pulpand Paper Association, said the power price escalation will cause a0.5-0.8 percent rise in the industry’s manufacturing costs.
Huy and Bao suggested businesses minimise other expenses and consideraccepting a profit decline to account for the power price increase.-VNA
