The Vietnam Electricity Group (EVN) starts to increase the average retail electricity price by 4.8% from May 10, the group announced on May 9.

The price is raised from VND2,103.12 to VND2,204.064 per kWh, excluding value added tax (VAT).

Since early 2023, electricity prices have been increased four times, 3%, 4.5%, and two consecutive 4.8%.

The latest increase is aimed at offsetting rising input costs as Vietnam becomes increasingly dependent on high-cost power sources such as coal, liquefied natural gas and renewable energy, according to EVN.

Cost-effective hydropower is projected to make up for just 25% of the national electricity output by 2025, while the remaining 75% to be sourced from high-cost power sources such as imported coal and LNG.

In addition, volatile foreign exchange rates, especially rising US dollar, also causing high generation costs.