HANOI - Vietnam will raise electricity prices by an average of 6.8 percent from March 1, a government official said on Tuesday.
Deputy Minister of Industry and Trade Do Huu Hao said Prime Minister Nguyen Tan Dung had already given initial approval for the price rise and the ministry would issue a circular on the new rates this week.
The hike would bring average electricity prices to VND1,036.9 (5.5 US cents) per kilowatt hour versus what Hao said was last year's average of VND970.9 per kilowatt hour.
There would be regional price variations, as well as differences based on usage and industry, another ministry officer said, but declined to give details.
Electricity prices are tightly controlled by the government.
The finance ministry early this month proposed lifting electricity prices by between 6.8 and 10.7 percent, while the industry and trade ministry suggested a 4.91 to 10.7 percent rise, the online newspaper VnExpress said.
Vietnam is targeting inflation this year of under 7 percent, but economists and bankers expect a higher inflation rate after the hike in electricity prices and a rise in retail petrol prices.
Vietnam 's electricity generating capacity is expected to rise 20 percent this year, helping ease a chronic power shortage, the industry and trade minister told parliament in November.
Domestic power consumption would rise 12-15 percent per year, the head of imports and exports at Vinacomin , Vietnam 's coal monopoly, said in January.
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