Vietnam to have restructured power tariff

• 13 years ago (2010-07-10)
• David Flin

North America 998

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The Vietnam Energy Association has said that the country’s power sector needs to charge consumers more and to rethink its pricing mechanisms in order to attract necessary investment. It estimates that the power sector needs an additional $80 billion of capital investment over the period 2010-15.

Dau Duc Khoi, Deputy General Director of Electricity of Vietnam (EVN) said that it needed to find an additional $40 billion for its planned programme of new power plant work worth $52 billion. Khoi said that the government should use development assistance funds and government funds to guarantee investors loans because: “No business could afford to pay interest rates of 14-15 per cent a year to invest in power development projects.” Khoi also said that the government should do away with the staggered price chart that it currently uses for power, because it was, he claimed, not cost-effective to manage.