The Ministry of Industry and Trade has issued a new frame of electricity prices for households to be applied from March 16 in conformity with the green light of the Prime Minister for state-run power firm Vietnam Electricity (EVN) to increase them by 7.5 percent this year.
In Vietnam, electricity for household use and production is sold at different prices.
According to the new prices, each kWh of electricity costs VND1,484 for the first 50 kWh used in a month. It goes up to VND1,533 a kWh from the 51st to 100th kWh consumed within a month.
Each kWh is priced at VND2,587 for families that use over 400kWh a month. A U.S. dollar is equivalent to VND21,335.
The prices of electricity for production are from VND869 to VND983 per kWh at normal times and VND2,459 to VND2,735 a kWh during peak time.
Last week, Prime Minister Nguyen Tan Dung approved the suggestion of EVN to increase the price of electricity in Vietnam by 7.5 percent, averaged at VND1,622 per kWh.
EVN said it would incur a loss of VND12 trillion ($577 million) in 2015 if power prices remained unchanged.
The price hike is expected to help EVN cut losses from recent years, ensure Vietnam’s gross domestic product growth at 6.2 percent this year, and control the inflation rate at five percent.