EVN announces new electricity pricing plans
EVN has just announced the Project to improve the new electricity price structure to widely collect opinions from people, experts, businesses...
Specifically, in the project, Vietnam Electricity Group (EVN) stated that the basis for innovating the new electricity price structure is because the current electricity price includes many steps, making the calculation of electricity bills complicated. Sometimes mistakes occur in the work of recording electricity indexes... causing frustration among the people.
Therefore, under the direction of the Ministry of Industry and Trade, EVN has researched and improved the electricity price structure for 2016-2017, which is the retail price of household electricity in steps:
According to EVN, electricity price is not only the price of a special invisible commodity but also implements social security policy, especially in the ladder price list. Therefore, research to improve the structure of the ladder price list for household electricity must be careful, reasonable improvement will be convenient when applied and receive support and sharing from electricity customers.
Specifically, EVN's new electricity price list was announced for comments with 3 options:
Option 1: Keep the current 6 levels.
According to the research team, this tariff has the advantage of a step-by-step household electricity price, with the higher the electricity output used, the higher the electricity price, thus encouraging households to use electricity economically and effectively, especially for electricity, which is a special product that uses resources as input fuel.
However, the disadvantage is that the Household Price List has many steps, which has complicated the work of paying electricity bills for customers. The monthly electricity bill depends on the amount of electricity used by the customer. The higher the amount of electricity used, the higher the price, contrary to the logic of normal consumption of goods, which is that the more you buy, the cheaper it is. This makes it difficult for customers to understand, check, and monitor, leading to difficulty in sympathy.
Especially every year during the hot season (May and June), households use more electricity for daily activities and have their electricity bills increase at a higher rate than the amount of electricity used, so they will have to pay a higher price.
Option 2: Regulate a household electricity price list (uniform price)
A household electricity price list (flat price) is 1,747 VND/kWh, this is the average electricity price list of the current ladder-based household electricity price list.
Advantage:easy to apply, clear transparency, electricity pricing, creating conditions to improve the electricity sales business in terms of meter reading. According to the experience of some countries, for daily life, meter readings are recorded once a quarter to increase labor productivity.
The electricity bill for the first two months of the quarter will be temporarily collected at the average electricity bill of the previous quarter. The last month of the quarter will be paid according to the meter reading.
When the implementation of quarterly meter readings is successful, the time will be extended by 1 quarter, making it twice a year for household electricity readings. At the same time, it will reduce the investment cost for installing new meters in the case of households using electricity in the same location separating to use electricity at a lower price at the first steps.
On the other hand, implementing a uniform price also creates conditions for gradual entry into the market, eliminating the implementation of social policies through electricity prices and the State will implement social policies through other direct measures.
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| EVN announces new electricity pricing plan. Illustrative photo |
Disadvantages:Following a flat rate may be difficult at first because it affects the poor and low-income earners, so specific calculations are needed. The pressure to save electricity under a flat rate plan is not as high as under a tiered price, although consumers must also calculate their own electricity bills.
Option 3: Reduce the household electricity price list from 6 levels to 3 or 4 levels with an average price of 1,747 VND/kWh.
Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5
Level 1 50 kwh 100 kwh 150 kwh 200 kwh 50 kwh
Level 2 250 kwh 200 kwh 150 kwh 200 kwh 150 kwh
Level 3 >300 kwh >300 kWh >300 kwh >400 kwh 200 kwh
Level 4 >400 kwh
Specifically, option 3 has 5 scenarios:
Scenario 1: Level 1 - 50 kwh costs 1,484; Level 2 - 250 kwh costs 1,763 VND/kwh; Level 3 over 300 kwh costs 2,557 VND/kwh.
Scenario 2:Level 1 - 100 kwh costs 1,501 VND/kwh; Level 2 - 200 kwh costs 1,907 VND/kwh; Level 3 - over 300 kwh costs 2,557 VND/kwh.
Scenario 3:Level 1 - 150 kwh costs 1,559 VND/kwh; Level 2 - 150 kwh costs 2,007 VND/kwh; Level 3 - over 300 kwh costs 2,557 VND/kwh.
Scenario 4:Level 1 – 200 kwh costs 1,584 VND/kwh; Level 2 – 200 kwh costs 2,325 VND/kwh; Level 3 over 400 kwh costs 2,587 VND/kwh.
Scenario 5:Level 1 – 50 kWh costs 1,484 VND/kwh; Level 2 – 150 kWh costs 1,670 VND/kwh; Level 3 – 200 kWh costs 2,325 VND/kwh; Level 4 over 400 kWh costs 2,587 VND/kwh.
Advantage:Encourage economical use of electricity. Customers who use more electricity in a month will pay higher electricity bills, while those who use less electricity will pay lower electricity bills. On the other hand, it also contributes to implementing social security policies for those who use less electricity and have low payment capacity, especially for scenarios 1, 2 and 5.
Disadvantages:Recording the index affects the payment of electricity bills with the number of kWh at a high level or in the hot season when a lot of electricity is used, the payment of electricity bills increases at a higher rate than the amount of electricity used, causing misunderstandings due to inaccurate recording of electricity usage index.
This creates bad public opinion affecting the reputation and brand of the business. When shortened to 3 or 4 steps, these problems still exist.
According to NDH
