The ceiling prices for power generation of thermal electricity and hydroelectricity unchanged in the year of 2017. — Photo vietnamplus

The Ministry of Industry and Trade has decided to keep thermal and hydroelectric power price ceilings unchanged in 2017.

According to a decision stipulating new electricity tariffs, the ceiling price for power generation of thermal electricity plants excluding value-added tax (VAT) will be VND1,568 per kWh (about 7 US cent).

The power price for the thermal electricity plants was calculated based on the coal price (including losses, management cost, insurance and excluding transport cost) of VND1.3 million per tonne.

The hydroelectricity plant price ceiling will be VND1,070 per kWh, excluding tax on water resources, environment fee and VAT.

The decision took effect January 1st, 2017. The ministry required the Electricity of Viet Nam (EVN) to report difficulties to the Electricity Regulatory Authority of Viet Nam during the decision implementation.

Based on electricity tariff ceilings, EVN and power generation units negotiate selling prices to follow the current legal regulations.

In 2015, the ceiling prices for power generation of thermal electricity and hydroelectricity were VND1,060 and VND1,383 per kWh.

During Tuesday’s conference to review EVN’s 2017 business operation plans, Dang Hoang An, the group’s general director, said its electricity production costs this year will increase by VND5 trillion (US$225 million), as coal prices sold to electricity rose by 7 per cent from the end of last year. — VNS