No electricity price adjustments have been proposed yet.

Currently, EVN has completed its 2012 audit report, and the Ministry of Industry and Trade and the Ministry of Finance are also reviewing the 2012 expenses. After the expense review results are available, a proposed electricity price will be made.

Responding to press inquiries about electricity price adjustments at a regular press conference on the afternoon of July 1st, Deputy Director of the Electricity Regulatory Authority (Ministry of Industry and Trade) Dinh The Phuc stated that electricity price adjustments must be based on many factors, the appropriate timing, and the extent of the adjustment must be calculated to avoid impacting the Consumer Price Index (CPI). Currently, EVN has completed its 2012 audit report, and the Ministry of Industry and Trade and the Ministry of Finance are also reviewing 2012 costs. After the cost review results are available, a proposed electricity price will be made.

According to Decision 24/2011/QD-TTg of the Prime Minister and Circular 31/2011/TT-BCT dated August 19, 2011 of the Ministry of Industry and Trade, when input parameters fluctuate by 5%, EVN is allowed to increase electricity prices by a corresponding amount after registering with and obtaining approval from the Ministry of Industry and Trade. If the Ministry of Industry and Trade does not provide feedback within 5 working days, EVN is allowed to independently increase electricity prices by another 5%. The most recent electricity price adjustment was on December 22, 2012, with a 5% increase to an average of 1,437 VND per kWh, and the minimum interval between price increases is 3 months.

The Ministry of Industry and Trade is currently finalizing a draft of a new electricity pricing structure, according to which electricity prices for manufacturing industries will increase by 2% - 7% (calculated on the average electricity price), depending on voltage level and time of electricity consumption.

According to the draft, the retail price of electricity for residential consumers will undergo some changes. Previously, the retail price had 7 tiers, but now it will be reduced to 6 tiers, with the 3rd and 4th tiers merged. Therefore, the price of electricity for 0-100 kWh remains unchanged; from 101-200 kWh, it will only be 108% of the average price (instead of 106% for 101-150 kWh and 134% for 151-200 kWh as currently); from 201-300 kWh, it will only be 138% of the average price (instead of 145%); and the price for the portion of kWh from 301-400 will be 154% (instead of 155%).

However, for consumption of 401 kWh or more, the price of electricity for household use increased by up to 6% (from 159% to 165% of the average electricity price). Meanwhile, the retail price of electricity for businesses decreased by 5% (normal hours), 3% (off-peak hours), and 8% (peak hours) for all voltage levels.

Also related to electricity, in response to press inquiries about the effectiveness of one year of operation of the competitive electricity generation market, a representative of the Electricity Regulatory Authority stated that initial results have been effective and transparent in mobilizing power sources. While previously there were concerns from businesses about the lack of transparency in power source mobilization, there have been no such concerns over the past year. This is because, according to the principle, power plants with lower prices are prioritized for mobilization, while those with higher prices are prioritized later, and this information is publicly available on the website.

In fact, during peak periods, the mobilization price sometimes reached its ceiling, which initially encouraged competition in power generation, especially creating market signals to gradually attract new investment in the power generation sector.

According to Deputy General Director of Vietnam Electricity Group (EVN) Duong Quang Thanh, in the first six months of the year, the Group's electricity production and purchased electricity reached 62,123 million kWh, an increase of 9.52% compared to the same period last year. Given that the oil and gas industry will cut gas supply for repairs in the last six months of the year, EVN representatives stated that the Group will maximize the use of oil resources to operate the Ca Mau 1 and Ca Mau 2 power plants. In addition, an additional 900MW of electricity will be supplied from two units of the Nghi Son Thermal Power Plant and the Hai Phong Thermal Power Plant to ensure sufficient power for the economy. (Source: chinhphu.vn)

According to Chinhphu.vn - TH