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Thursday, July 18, 2024

Electricity tariffs subject to review every three months

The Saigon Times

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HCMC – Reviews of electricity tariffs will be done every three months, starting May 15, according to a recent Government decision.

Deputy Prime Minister Le Minh Khai yesterday, March 26, signed a decision regulating the mechanism for adjusting the average retail electricity tariff. Effective from May 15, 2024, Decision 05 replaces Decision 24 signed in 2017.

As per the new decision, the interval for electricity tariff adjustments has been reduced from six to three months. The average electricity tariffs are calculated quarterly based on production costs.

If the recalculated tariffs decrease by 1% or more compared to current rates, EVN would cut tariffs. On the contrary, if tariffs increase from 3% to below 5%, upward adjustments would be made accordingly, with reports submitted to the Ministry of Industry and Trade (MOIT) and Ministry of Finance (MOF) for review within five working days.

For increases ranging from 5% to less than 10%, EVN must seek approval from the Ministry of Industry and Trade before adjusting tariffs.

If increases exceed 10% or leave significant macroeconomic implications, the Ministry of Industry and Trade will conduct thorough inspections and seek input from relevant ministries and agencies, presenting the case to the Prime Minister for consideration.

The PM has also tasked the Ministry of Industry and Trade with guiding EVN in power tariff calculations, implementing electricity tariff adjustments, and overseeing inspection and supervision procedures.

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