EVN is allowed to increase electricity prices by up to 5%

The minimum time for adjusting the average electricity price is 6 months from the last adjustment of the electricity price. In case the electricity price needs to increase from 3% to less than 5%, EVN has the right to decide.

This is the latest content in Decision No. 24/2017/QD-TTg, which Prime Minister Nguyen Xuan Phuc has just signed to replace Decision No. 69/2013/QD-TTg on the mechanism for adjusting average retail electricity prices, applicable to organizations and individuals participating in electricity activities and using electricity.

The decision clearly states: Every year, after checking the electricity production and business costs of Vietnam Electricity Group (EVN), the average electricity selling price is reviewed and adjusted according to objective fluctuations in input parameters of all stages (power generation, power transmission, electricity distribution - retail, industry operation - management and power system support services) compared to the parameters used to determine the current average electricity selling price.

During the year, the average electricity price is considered for adjustment when the basic input parameters in the power generation stage fluctuate compared to the parameters used to determine the current average electricity price.

electricity price adjustment, electricity price increase, electricity price, EVNElectricity price adjusted at least once every 6 months

When the input parameters as prescribed above fluctuate causing the average electricity price to decrease compared to the current average electricity price, the electricity price is adjusted downward. When the input parameters fluctuate causing the average electricity price to increase by 3% or more compared to the current average electricity price, the electricity price is allowed to be adjusted upward.

The minimum time for adjusting the average electricity price is 6 months from the most recent electricity price adjustment.

Also according to this decision, 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.

In case the average electricity price needs to be adjusted to increase by 10% or more compared to the current average electricity price or adjusted outside the prescribed price range or affecting the macroeconomic situation, based on the electricity price plan submitted by EVN, the Ministry of Industry and Trade shall preside over and coordinate with the Ministry of Finance to inspect and review.

Within 15 working days, the Ministry of Finance is responsible for checking, reviewing and sending written comments to the Ministry of Industry and Trade. After that, the Ministry of Industry and Trade is responsible for synthesizing and reporting to the Prime Minister for consideration and comments. If necessary, the Ministry of Industry and Trade will coordinate with the Ministry of Finance to report to the Price Management Steering Committee before reporting to the Prime Minister.

The Decision clearly states that the adjustment of average electricity price must be carried out publicly and transparently.

In case the average electricity price needs to be adjusted down but EVN does not adjust it down, the Ministry of Industry and Trade is responsible for requesting this group to reduce the electricity price.

If any errors are found in the results of electricity price calculations, the Ministry of Industry and Trade is responsible for requesting Vietnam Electricity Group to stop adjusting or readjust the average electricity price.

According to VNN