Vietnam Electricity (EVN) is responsible for reducing the average retail price of electricity at the corresponding rate, but not lower than the minimum price of the price bracket. (Photo: VNA/VNS) Under the draft, when the input parameters fluctuate, causing theaverage retail price of electricity to decrease compared to the current averageretail price, Vietnam Electricity (EVN) is responsible for reducing the averageretail price of electricity at the corresponding rate, but not lower thanthe minimum price of the price bracket
It would also reduce the retail price of electricity for eachgroup of electricity users in accordance with current regulations on thestructure of the electricity retail tariff.
After the reduction, EVN is responsible for making a report tothe MoIT, the Ministry of Finance (MoF) and the State CapitalInvestment Corporation (SCIC) for inspection and supervision.
In the other case, when the average retail price of electricityincreases by 1% to less than 5% compared to the current average retail priceand within the price bracket, EVN decides to increase the average retail priceof electricity correspondingly and increase the retail price of electricity foreach group of electricity users.
After the adjustment, it is responsible for making a report to theMoIT, MoF and SCIC for inspection.
In case the average retail price of electricity increases from 5%to less than 10% compared to the current average retail price and within theprice bracket, EVN prepares a dossier of the plan of average retail electricityprice and submits it to the MoIT, MoF and SCIC.
The MoIT will assume the prime responsibility for, and coordinatewith the MoF and the Committee for Management of State Capital at Enterprises,in inspecting, reviewing and commenting on the average retail electricity priceplan submitted by EVN.
Based on the written opinion from the MoIT, EVN will decide toincrease the average retail price of electricity and increase the retail priceof electricity for each group of users from October 1 of that year.
In case the calculated average retail price of electricityincreases by 10% or more compared to the current average retail price ofelectricity or is outside the price bracket or affects the macro-economicsituation, EVN will prepare a dossier of the retail price plan to besubmitted to the MoIT, MoF and SCIC.
Then MoIT will assume the prime responsibility for, and coordinatewith the MoF and SCIC, in inspecting, reviewing and reporting to the SteeringCommittee for Price Management before September 1 of that year for the SteeringCommittee to operate the price for comments.
Since early this year, electricity tariffs havebeen facing upward pressure when input costs have skyrocketed. Forexample, the average price of anthracite supplied by Vietnam NationalCoal-Mineral Industries Holding Corp. (Vinacomin) increased by 63%. The priceof imported coal doubled, to 305 USD per tonne while that of Brent crude oilhit 105 USD a barrel, nearly 2.5 times higher than before.
Keeping the power prices unchanged is part of efforts thegovernment has been making to curb inflation and stabilise themacroeconomy this year, said local media.
EVN data said the average retail price of electricity in 2022 hasreached 1,915 VND (0.82 USD) per kWh, 2.74% higher than the current averagerate applied since 2019, which is 1,844 VND (0.79 USD)/kWh.
According to MoIT, the average retail electricity tariff in Vietnamis adjusted when the input parameters including generation, transmission,distribution, operation, increase by 3% or more./.
VNA
