Deputy PM requests suitable time for power price changes next year

13:36 | 17/11/2018 Industry

Deputy Prime Minister Vuong Dinh Hue has asked that electricity prices, which affect many sectors, be adjusted at an appropriate time next year in order to keep inflation in 2019 below 4 %.

Workers examine electricity facilities

He made the request while chairing a recent meeting on price management for next year.

Deputy Minister of Industry and Trade, Dang Hoang An, said, in order to realise the Government’s resolution, electricity prices haven’t been raised in 2018 to help control inflation as targeted by the National Assembly.

He affirmed that the power sector is still able to ensure electricity supply for 2019.

Although retail prices have been kept unchanged, input costs have been rising, and gas supply for power generation has hit its exploitation limit. Meanwhile, El Nino is forecast to hit Vietnam and cause a drought next year, affecting the operation of hydropower plants.

All these factors have caused and will cause difficulties for the sector, An noted.

At the meeting, Deputy PM Hue asked the ministry to take into account next year’s inflation target of under 4 % to propose power price changes at an appropriate time to the Prime Minister.

According to the Ministry of Finance and the General Statistics Office, the consumer price index (CPI) in November is likely to stay flat or decline, helping keep this year’s CPI hike rate under 4 %.

Deputy PM Hue ordered the relevant ministries and sectors to not be complacent but keep a close watch on domestic and global prices through December to ensure the supply and demand balance and stable prices, especially in the Christmas and New Year holidays.

They also need to actively build price scenarios and adjust public services prices in line with the inflation target for next year.