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Tuesday, June 25, 2024

Retail electricity tariffs might exceed VND3,600 per kWh

The Saigon Times

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HCMC – Retail electricity tariffs may now surpass VND3,612 per kWh, as the Ministry of Industry and Trade contemplates changes to the existing structure.

In a recent draft decision, the ministry is seeking feedback from the Ministry of Justice, shedding light on adjustments to the progressive tariff rates for household consumers.

The key modification involves reducing the existing six progressive tariff rates to five, with a notable alteration being the threshold for the lowest rate. Instead of the current 50 kWh, this rate will now apply to those consuming below 100 kWh. Meanwhile, the highest rate will be applicable to those consuming 701 kWh and above.

These adjusted tariff rates will span a range from 90% to 180% of the average electricity tariff, which stood at VND2,006.79 per kWh as of November 9. Consequently, the lowest retail electricity tariff will be set at around VND1,806 per kWh, while the uppermost rate may climb to VND3,612 per kWh, exclusive of value-added tax.

The Ministry of Industry and Trade’s primary objective in applying five progressive tariff rates is to alleviate the burden of escalating electricity costs that low-income households face. Furthermore, these changes align the disparity between the lowest and highest rates with international standards, promoting energy saving and efficient usage.

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