Vietnamese
On March 26, 2023, the Prime Minister issues the Decision No. 05/2024/QD-TTg on the mechanism for adjusting the average electricity retail prices
Accordingly, within the year, the average electricity price is reviewed and adjusted based on updates to the electricity generation costs, electricity purchase costs from electricity plants providing electric system ancillary services according to the basic input parameters in generation stage, and other costs not yet included in the electricity price.
If the average electricity price decreases by 1% or more compared to the current average electricity price, the electricity price is allowed to be adjusted downwards accordingly.
If the average electricity price increases by 3% or more compared to the current average electricity sale price, the electricity price is allowed to be adjusted upwards.
The minimum period for adjusting the average electricity price is 03 months from the most recent electricity price adjustment.
On the mechanism for adjusting the average electricity retail prices, the Decision 05 points out clears that in case the calculated average electricity price decreases by 1% or more compared to the current average electricity price, Vietnam Electricity (EVN) is responsible for reducing the average electricity price accordingly.
In case the average electricity price needs to be adjusted to increase by 3% to less than 5% compared to the current average electricity price, Vietnam Electricity (EVN) decides to adjust the average electricity price to increase accordingly.
In case the average electricity price needs to be adjusted to increase by 5% to less than 10% compared to the current average electricity price, Vietnam Electricity (EVN) is allowed to adjust the average electricity price to increase accordingly after reporting and being approved by the Ministry of Industry and Trade.
In case the average electricity price needs to be adjusted to increase by 10% or more compared to the current average electricity price or affects the macroeconomic situation, on the basis of the electricity price proposal document submitted by Vietnam Electricity (EVN), the Ministry of Industry and Trade presides over the audit and review and sends to the Ministry of Finance and relevant ministries and agencies for comments.
Decision No. 05/2024/QD-TTg takes effect on May 15, 2024.
