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Monday, July 22, 2024

Shorter interval of electricity price adjustments proposed

By T. Dao

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HCMC – The Ministry of Industry and Trade (MOIT) has proposed revising electricity prices every three months, instead of the current every six months.

The MOIT said that shorter intervals of three months would be more effective in reflecting the dynamic changes in the energy market.

This proposal is part of a draft decision of the prime minister, focusing on retail electricity pricing based on the average retail electricity price, the Vietnam News Agency reported.

The proposed electricity pricing system will carefully consider various factors, including the electricity supply plan, the overall operation of the power system, and the production and business costs of the Vietnam Electricity Group (EVN).

Under the new system, EVN will be responsible for implementing changes in electricity prices based on specific conditions. If the average retail electricity price decreases by at least 1% compared to the current average, EVN will be obliged to reduce the retail prices accordingly. Conversely, if the average retail price increases by 3% to below 5% within the set price range, EVN will be allowed to make a corresponding increase.

In cases where the price increase is between 5% and below 10% within the price range, EVN will need to report the proposed increase to the MOIT for approval. If the average retail electricity price hike exceeds 10% or falls outside the price range, potentially affecting the macro-economy, the ministry will report the matter to the prime minister for further examination.

This proposed modification aims to bring more frequent updates to the electricity pricing structure and is now open for public feedback.

Prior to presenting this proposal, the ministry had sought public feedback on restructuring the retail electricity pricing for household consumption, suggesting the reduction of pricing tiers from six to five.

The average retail electricity price in Vietnam currently stands at over VND1,900 per kWh.

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