EVN officially has the right to increase electricity prices by less than 5%

Vietnam Electricity Group is allowed to adjust electricity prices corresponding to the average electricity selling price that needs to be adjusted to increase from 3% to less than 5%.

From today (August 15), Decision No. 24/2017/QD-TTg of the Prime Minister replaces the old 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, officially takes effect.

Decision No. 24/2017/QD-TTg stipulates the principles for adjusting the average retail electricity price on the basis of: Annually, after checking the electricity production and business costs of Vietnam Electricity Group, the average electricity 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 price.

Electricity price adjustment is done every 6 months. (Illustration photo: KT)

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 last adjustment of the electricity price.

In case the average electricity price needs to be adjusted to increase from 3% to less than 5% compared to the current average electricity price and within the prescribed price range, Vietnam Electricity Group (EVN) decides to adjust the average electricity price to increase at the corresponding level. After increasing the price, 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% compared to the current average electricity price and within the prescribed price range, Vietnam Electricity Group is allowed to adjust the average electricity price to increase at the corresponding level after reporting and being approved by the Ministry of Industry and Trade.

Within 15 working days, the Ministry of Industry and Trade shall be responsible for responding in writing to the Vietnam Electricity Group for implementation. After making adjustments, the Vietnam Electricity Group shall be responsible for reporting to the Ministry of Industry and Trade and the Ministry of Finance.

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 Vietnam Electricity Group, the Ministry of Industry and Trade shall preside over and coordinate with the Ministry of Finance to inspect and review.

Within 15 working days from the date of receiving the complete price plan dossier of Vietnam Electricity Group, the Ministry of Finance is responsible for checking, reviewing and sending written comments to the Ministry of Industry and Trade.

Within 15 working days from the date of receiving the comments from the Ministry of Finance after inspection and review, the Ministry of Industry and Trade shall be responsible for synthesizing and reporting to the Prime Minister for consideration and comments. If necessary, the Ministry of Industry and Trade shall coordinate with the Ministry of Finance to report to the Price Management Steering Committee before reporting to the Prime Minister./.

According to VOV