Ministry of Industry and Trade issues electricity generation price frame for 2019

The Ministry of Industry and Trade has just issued Decision No. 281 on promulgating the 2019 electricity generation price framework applicable to negotiating electricity purchase and sale contract prices of power plants according to regulations.

Specifically, for coal-fired thermal power plants, the ceiling price of the electricity generation price frame (excluding value added tax, port costs and shared infrastructure) applied to imported coal with a net capacity of 1x600 MW is VND 1,896.05/kWh. The ceiling price of a standard power plant with a net capacity of 2x600 MW is VND 1,677.02/kWh.

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Fuel parameters used to calculate electricity generation prices in 2019 include: Net fuel consumption rate at 85% load: 0.478 kg/kWh (net capacity 1x600MW); 0.474 kg/kWh (net capacity 2x600MW). Calorific value of coal: 4,797 kcal/kg. Coal price (excluding VAT and transportation costs): 1,737,978 VND/ton (imported coal). The VND/USD exchange rate is 23,350.

For hydropower plants, the ceiling price of electricity (excluding water resource tax, forest environmental service fee, water resource exploitation right fee and value added tax) is 1,110 VND/kWh.

This decision takes effect from February 12, 2019.

Based on the prescribed electricity price framework and detailed fuel parameters used to calculate the electricity price framework for coal-fired thermal power plants, Vietnam Electricity Group and the power generation unit negotiate the actual electricity purchase and sale price in compliance with current legal regulations on methods for determining electricity prices and on management of construction investment costs issued by competent authorities.