Vietnam electricity price may be based on raw material prices

 Electricity price in Vietnam will be increased if coal price for electricity becomes equal to the market price in 2012.

This was announced by the the Ministry of Industry and Trade.

If there is no unusual fluctuation, electricity sector can ensure adequate electricity supply for socio-economic development in 2012, a representative of  the Electricity Regulatory Authority of Vietnam said.

According to the Prime Minister’s Decision No.24 on April 15th 2011, price of input material is one of the three factors to adjust the electricity price, Dinh The Phuc the deputy director general of ERAV.

However, electricity is a backbone good of the country’s economy. If the electricity increase, it will be raised step by step, following roadmap to not influence dramatically, deputy Minister Nguyen Nam Hai said.

Besides, the coal prices for steel, cement and electricity industries will still follow the special prices, consistent with the difficult economic situation, high interest rates.