WB offers power pricing suggestions
Ha Noi (VNA) – The Electricity Regulatory Authority of Viet Nam (ERAV) and the World Bank (WB) convened a meeting on August 16 to look at a possible pricing system for the country’s power industry.ERAV said that if the nation is to have a competitive power market by 2009, the current retail tariff system must be fine tuned, as it has failed to encourage economic efficiency, attract investors and has failed to build a concrete price mechanism for power generation and transmission costs.
The agency cited the setting of proper retail tariffs as an urgent need to create a legal framework for the development of the power sector.
At the workshop, WB consultant Pedro Antmann suggested a gradual reduction in subsidies and the establishment of platforms to ensure transparency and efficiency within the industry.
ERAV said that methods would be studied and if proven successful would be used as the basis for compiling regulations on the setting of retail tariffs.
The new regulations have been scheduled for roll out on a trial basis by 2009 with the aim of having an operation framework in place by 2010.-Enditem
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