Preparing to apply new electricity prices: 6 price levels, using more will cost more

The Ministry of Industry and Trade is drafting a Prime Minister's Decision regulating the structure of retail electricity prices. The draft clearly states that retail electricity prices are specified in detail for each group of electricity users, including: Production, business, tourist accommodation, administrative and professional services, and daily life.

The new point of the draft is that the electricity price table stipulates that the electricity price of each step is calculated as a percentage of the average retail electricity price, but the distance between the steps remains the same as before.

Specifically, the retail price of household electricity is still divided into 6 levels as before: From 0-50kWh, the price is equal to 92% of the average retail electricity price; from 51-100kWh, the price is equal to 95% of the average retail electricity price; from 101-200kWh, the price is equal to 110% of the average retail electricity price; from 201-300kWh, the price is equal to 138% of the average retail electricity price; from 301-400kWh, the price is equal to 154% of the average retail electricity price; and from 401kWh and above, the price is equal to 159% of the average retail electricity price.

In case the electricity consumption structure changes, based on the average retail electricity price adjusted by authority, the retail electricity price for electricity customer groups is allowed to be adjusted within ± 2% compared to the rate specified in this Decision.

For retail electricity prices for household electricity customers, this electricity price list is still divided into 6 levels with gradually increasing prices to encourage economical and efficient use of electricity.

Retail price of electricity for household use using prepaid card meters is applied when technical conditions permit for groups of customers buying electricity temporarily and buying electricity for short-term use for household purposes.

6 levels with increasing prices to encourage economical and efficient use of electricity.

The draft also clearly states: Poor households according to the criteria prescribed by the Prime Minister are supported with electricity bills for living purposes, the monthly support level is equivalent to the electricity bill for 30kWh calculated according to the current retail price of level 1 household electricity.

Social policy households according to the criteria prescribed by the Prime Minister (not poor households receiving electricity support as prescribed in Clause 6 of this Article) and whose monthly electricity consumption for domestic purposes does not exceed 50 kWh will be supported with electricity equivalent to the electricity consumption of 30 kWh calculated according to the current retail price of household electricity at level 1.

Funds to support electricity bills for poor households and social policy households are drawn from the State budget.

With the current average retail electricity price of 1,622.01 VND/kWh, it can be seen that the retail price of household electricity at each level is almost kept at the same level as before, specifically from 1,484-2,587 VND/kWh.

Recently, Deputy Prime Minister Vuong Dinh Hue requested the Ministry of Industry and Trade to urgently complete the plan to adjust electricity prices and submit it to the Government for decision. In case it is necessary to increase electricity prices, it is necessary to consider adjusting them at the lowest possible level, while simultaneously combining them with other growth support solutions to compensate for the corresponding decrease in GDP growth rate.

In Decision No. 24/2017/QD-TTg, EVN is allowed to increase or decrease the average electricity price within the price range prescribed by the Prime Minister.

If the average electricity price decreases compared to the current average electricity price and within the prescribed price range, EVN is responsible for reducing the average electricity price at the corresponding level.

In case the average electricity price needs to be adjusted to increase from 3% to less than 5%, EVN is allowed to decide to adjust the average electricity price to increase at the corresponding level.

After increasing or decreasing prices, Vietnam Electricity Group prepares a report to the Ministry of Industry and Trade and the Ministry of Finance for inspection and supervision.

In case the average electricity price needs to be adjusted to increase from 5% to less than 10%, EVN is allowed to adjust the electricity price after reporting and receiving approval from the Ministry of Industry and Trade. Within 15 working days, the Ministry of Industry and Trade is responsible for responding in writing for EVN to implement.

According to VNN