Proposal to calculate the highest electricity price of 2,890 VND per kWh
The Ministry of Industry and Trade proposed a price for option one of electricity price fluctuating around 2,703-2,890 VND per kWh, excluding VAT.
According to the draft Decision on the structure of the retail electricity price list of the Government, the retail electricity price list for household use is a percentage (%) of the average retail electricity price (currently 1,864.44 VND per kWh). And when the average retail electricity price is adjusted by the competent authority, the retail electricity price list will also be adjusted accordingly.
Two options for retail electricity prices for households were put forward for consultation, including 5 steps and one electricity price. Customers have the right to choose to apply the 5-step household price or the single-price retail electricity price. The minimum time for customers to change from the 5-step retail electricity price to the single-price electricity price (or vice versa) is one year (12 billing periods).
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| Illustration |
The Ministry of Industry and Trade also proposed two pricing scenarios. In scenario 1, the 5-step progressive tariff has the lowest rate equal to 90% of the average retail electricity price for kWh 0-100 and the highest rate is 274% of the average retail electricity price for kWh from 701 and up. The single-price electricity corresponds to 145% of the average retail electricity price,about 2,703 VND per kWh(excluding VAT).
| Customer target | Price *(VND/kWh) | Compared to average retail price (%) |
| Retail price 5 levels | ||
| Level 1: 0-100 | 1,678 | 90 |
| Level 2: 101-200 | 2.014 | 108 |
| Level 3: 201- 400 | 2,629 | 141 |
| Level 4: 401-700 | 2,983 | 160 |
| Level 5: 701 and above | 5.109 | 274 |
| Single retail electricity price | 2,703 | 145 |
In scenario 2, the retail price of household electricity with 5 levels has the lowest rate of 90% of the average retail price of electricity for 0-100 kWh and the highest rate of 185% of the average retail price of electricity from 701 kWh and above. And the single-price electricity is 155% of the average retail price of electricity,about 2,890 VND per kWh, excluding VAT.
| Customer target | Price* (VND/kWh) | Compared to average retail price (%) |
| Retail price 5 levels | ||
| Level 1: 0-100 | 1,678 | 90 |
| Level 2: 101-200 | 2.014 | 108 |
| Level 3: 201-400 | 2,629 | 141 |
| Level 4: 401-700 | 2,983 | 160 |
| Level 5: 701 kWh or more | 3,450 | 185% |
| Single price electricity | 2,890 | 155% |
Previously, the leader of the Ministry of Industry and Trade said that the single price of electricity "will certainly be higher than the average retail price of electricity, currently at 1,864.44 VND per kWh". According to experts, the price in the single price option will hardly be below 2,000 VND per kWh. Mr. Tran Viet Ngai suggested that if there is a single price for electricity, the price must be equivalent to level 4 of the current ladder price list, which is 2,282 VND per kWh, or the average price of the current 6 steps, about 2,154 VND per kWh.
Also according to the draft, the Ministry of Industry and Trade also proposed a retail electricity price plan calculated only by steps and divided into 5 steps:
| Customer target | Price* (VND/kWh) | Compared to average retail price (%) |
| Level 1: For kWh 0-100 | 1,678 | 90 |
| Level 2: 101 - 200 | 2.014 | 108 |
| Level 3: 201-400 | 2,629 | 141 |
| Level 4: 401-700 | 2,983 | 160 |
| Level 6: 701 kWh or more | 3.132 | 168 |
The draft Decision still maintains the regulation that poor households and policy households will be supported with electricity bills. Accordingly, poor households will still be supported with household electricity bills equivalent to 30 kWh per month, calculated at level 1 of the retail electricity price list. Social policy households whose household electricity usage does not exceed 50 kWh per month will be supported with electricity bills equivalent to 30 kWh per month, calculated at level 1 of the household price list. Funds to support poor households and policy households with electricity bills are allocated from the State budget and other legal financial sources.
At the Government press conference last week, Deputy Minister of Industry and Trade Do Thang Hai said that the agency will collect opinions and submit to the Prime Minister for decision on the new retail electricity price list in the third quarter of this year and is expected to have a new retail electricity price list for households from the beginning of 2021.
*Prices are estimated based on the current average retail electricity price of VND 1,864.44/kWh; excluding VAT.
