HCMC – Vietnam Electricity Group (EVN) has endorsed a proposal for a new electricity tariff adjustment mechanism.
In an official dispatch sent to the Ministry of Industry and Trade (MOIT), EVN expressed its agreement with a draft decision that would replace the current Prime Minister’s Decision 24/2017, governing the framework for retail electricity tariff adjustments.
The key feature of this proposed framework is a shift to a three-month adjustment cycle for electricity tariffs, departing from the existing six-month cycle.
Under this structure, MOIT would evaluate EVN’s production and operational costs. The recalculated average retail electricity price would then be adjusted based on objective fluctuations in input factors at all stages of the electricity supply chain.
Price adjustments would adhere to a structured approach for both increase and decrease. Specifically, EVN would reduce prices if the average retail electricity tariff drops by 1% or more compared to the current rate within the defined price range. In such cases, EVN would prepare reports for MOIT and the Ministry of Finance (MOF) to review.
For instances where prices increase by 3% or more, the adjustment mechanism would be activated. The extent of these increases would correspond to the degree of the average retail price rise.
Adjustments between 3% and less than 5% would fall under EVN’s jurisdiction. Subsequent reports would be submitted to MOIT, MOF, and the Commission for the Management of State Capital at Enterprises (CMSC) for further oversight.
When upward adjustments are needed in the range of 5% to less than 10%, MOIT would assume decision-making responsibilities, reviewing EVN’s proposed pricing plan.
In cases of more significant increases exceeding 10% or falling beyond the prescribed range, MOIT, MOF, and CMSC would collaborate to assess, review, and present the case to the Prime Minister for consideration.