EVN has the right to decide if electricity price increases by less than 10%

The minimum time for adjusting the average electricity price between two consecutive times is 6 months.

The Prime Minister has just issued Decision No. 69/2013/QD-TTg regulating the structure of adjusting average retail electricity prices; effective from January 10, 2014.

Accordingly, the average electricity price is adjusted within the price range prescribed by the Prime Minister and can only be adjusted at a rate of 7% or more compared to the current average electricity price. The minimum time for adjusting the average electricity price between two consecutive times is 6 months.

Regarding the mechanism for adjusting electricity prices, the Decision clearly states: In case the basic input parameters at the time of calculation fluctuate from 7% to less than 10% and within the prescribed price range, EVN is allowed to adjust the average electricity price up at the corresponding level.

From 10% or more or the average electricity price calculated after adjustment is outside the prescribed price range, EVN will prepare a price plan dossier, report to the Ministry of Industry and Trade and send it to the Ministry of Finance for appraisal.

Within 10 working days from the date of receiving the complete price plan dossier from EVN, the Ministry of Finance is responsible for appraising and sending written appraisal opinions to the Ministry of Industry and Trade. After synthesizing opinions, the two ministries will submit to the Prime Minister for consideration and comments.

According to Decision 69: In case the average electricity price needs to be adjusted down compared to the current average electricity price and within the prescribed price range, EVN is responsible for adjusting the average electricity price down to the corresponding level and reporting to the Ministry of Industry and Trade and the Ministry of Finance.

Every year, after having the final report on costs and prices of electricity production and business, the independently audited financial statements of Vietnam Electricity Group and its member units, the Ministry of Industry and Trade presides over and coordinates with the Ministry of Finance to inspect and calculate the costs of electricity production and business of the stages of power generation, power transmission, power distribution-retail, operation-management and auxiliary services of the power system, and the average electricity price of the fiscal year. Every year, Vietnam Electricity Group develops a plan for electricity prices to submit to the Ministry of Industry and Trade and the Ministry of Finance. However, the Government has not yet specified how much lower the base electricity price is than the retail price, which will require EVN to reduce the price./.

According to VOV