Principles for adjusting the average electricity selling price
According to the newly issued Decision, every year, after checking the electricity production and business costs in years N-2 of Vietnam Electricity Group (EVN), the average electricity selling price in year N is reviewed and adjusted. according to objective fluctuations in input parameters of all stages (electricity generation, electricity transmission, electricity distribution - retail, electricity system dispatching and electricity market transaction management, system support services electricity and industry management) and the allocation of other costs not included in the electricity price.
During the year, the average electricity selling price is considered and adjusted on the basis of updating electricity generation costs and electricity purchase costs from power plants providing auxiliary services according to basic input parameters in the electricity generation stage. and other costs not included in the electricity price.
When the average electricity selling price decreases by 1% or more compared to the current average electricity selling price, the electricity price is allowed to adjust accordingly.
When the average electricity selling price increases by 3% or more compared to the current average electricity selling price, the electricity price is allowed to increase.
The average electricity price adjustment time is at least 03 months from the most recent electricity price adjustment.
The average electricity selling price is calculated according to the provisions of Article 4 of this Decision. In case the calculated average electricity selling price is outside the price bracket, adjustments will only be considered within the price bracket prescribed by the Prime Minister. Vietnam Electricity Group is allowed to increase or decrease the average electricity selling price within the price bracket according to the mechanism specified in Article 5 and Article 6 of this Decision.
In case the average electricity selling price needs to be adjusted to be 10% or more higher than the current average electricity selling price or affects the macroeconomic situation, the Ministry of Industry and Trade shall preside and coordinate with relevant ministries and agencies. inspection, review and reporting to the Prime Minister for consideration and comments. In case of necessity, the Ministry of Industry and Trade coordinates with relevant ministries and agencies to report to the Price Management Steering Committee before reporting to the Prime Minister.
Adjustments to the average electricity selling price must be made publicly and transparently.
Method for establishing average electricity selling price
The average electricity selling price is established on the basis of the cost of generating electricity, the cost of purchasing electricity transmission services, electricity distribution - retail, dispatching the electricity system and managing electricity market transactions, costs Power system support services, industry operating and management costs, and other costs are allocated and only include costs that directly serve EVN's electricity production and supply to ensure the ability operating capacity, power supply and meeting investment needs according to the approved plan, in which the costs of each stage take into account price deductions according to regulations.
The cost of purchasing electricity from the Electricity Seller is implemented according to the regulations on electricity market operation at each level issued by the Ministry of Industry and Trade and according to the Electricity Purchase Contract signed between the Electricity Seller and the Electricity Purchaser.
The cost of purchasing electricity transmission services, the cost of purchasing electricity distribution - retail services, the cost of purchasing electricity system dispatching services and managing electricity market transactions, the costs of supplying power plants Power system support services, industry operating and management costs are determined on the basis of cost plus profit norms of the stages of power transmission, distribution - retailing of power, dispatching of the power system and regulation of the power system. Operate electricity market transactions, power plants provide power system support services, and operate and manage EVN's industry according to regulations issued by the Ministry of Industry and Trade. Cost deductions are determined on the basis of data in the audited financial statements.
Mechanism to adjust the average annual electricity price
According to Decision 05/2024/QD-TTg, based on the plan for power supply and operation of the power system in year N issued by the Ministry of Industry and Trade, the results of checking electricity production and business costs in year N-2 according to stipulated in Article 7 of this Decision, estimate the results of electricity production and business in year N-1 (in case there are no results of checking electricity production and business costs in year N-1), before January 25, 01. N EVN calculates the average electricity selling price according to the formula specified in Clause 2, Article 4 of this Decision and implements the dossier requirements as prescribed in Clause 2 of this Article.
In case the calculated average electricity selling price decreases by 1% or more compared to the current average electricity selling price, EVN is responsible for reducing the average electricity selling price by a corresponding level. In case the average electricity selling price needs to be adjusted to increase from 3% to less than 5% compared to the current average electricity selling price, EVN decides to adjust the average electricity selling price to a corresponding level. Within 5 working days from the date of making adjustments, EVN is responsible for preparing documents to report to the Ministry of Industry and Trade to preside and coordinate with relevant ministries and agencies for inspection and supervision.
In case the average electricity selling price needs to be adjusted to increase from 5% to less than 10% compared to the current average electricity selling price, EVN is allowed to adjust the average electricity selling price to a corresponding increase after reporting and receiving approval from the Ministry. Industry and Trade approved. Within 15 working days from the date of receiving the complete price plan dossier from EVN, the Ministry of Industry and Trade is responsible for responding in writing for EVN to implement. Within 5 working days from the date of making the adjustment, EVN is responsible for reporting to the Ministry of Industry and Trade.
In case the average electricity selling price needs to be adjusted to increase by 10% or more compared to the current average electricity selling price or affects the macroeconomic situation, based on the electricity price plan dossier submitted by EVN, the Ministry Industry and Trade presides over inspection, review and sends comments to the Ministry of Finance and relevant ministries and agencies. Based on comments from the Ministry of Finance and relevant ministries and agencies, the Ministry of Industry and Trade synthesizes and reports to the Prime Minister for consideration and comments. In case of necessity, the Ministry of Industry and Trade coordinates with relevant ministries and agencies to report to the Price Management Steering Committee before reporting to the Prime Minister.
Mechanism to adjust the average electricity selling price during the year
Decision 05/2024/QD-TTg also stipulates that, before the 25th of the first month of Quarter II, Quarter III and Quarter IV, EVN determines the actual commercial electricity output of the previous quarter and the total cumulative commercial electricity output. From the beginning of the year, estimate commercial electricity output for the remaining months of the year; Determine the electricity generation cost of the immediately preceding quarter, the cumulative electricity generation cost from the beginning of the year (including the cost of purchasing electricity from plants providing auxiliary services), estimate the electricity generation cost for the remaining months. during the year according to basic input parameters in the electricity generation stage and update other costs not included in the electricity price to recalculate the average electricity selling price according to the formula specified in Clause 2, Article 4 of this Decision. (other parameters remain unchanged) and comply with document requirements as prescribed in Clause 2 of this Article:
In case after updated calculation, the calculated average electricity selling price is 1% or more lower than the current average electricity selling price, EVN is responsible for adjusting and reducing the average electricity selling price at the corresponding level. Within 5 working days from the date of making adjustments, EVN is responsible for preparing documents to report to the Ministry of Industry and Trade to preside and coordinate with relevant ministries and agencies for inspection and supervision.
In case after updated calculation, the average electricity selling price needs to be adjusted to be higher than the current average electricity selling price from 3% to less than 5%, EVN decides to adjust the average electricity selling price to a similar level. response. Within 5 working days from the date of making adjustments, EVN prepares documents to report to the Ministry of Industry and Trade to preside and coordinate with relevant ministries and agencies for inspection and supervision.
In case after updated calculation, the average electricity selling price needs to be adjusted to be higher than the current average electricity selling price from 5% to less than 10%, EVN is allowed to adjust to increase the average electricity selling price at a similar level. response after reporting and being approved by the Ministry of Industry and Trade. Within 15 working days from the date of receipt of EVN's complete price plan dossier, the Ministry of Industry and Trade is responsible for responding in writing for EVN to implement. Within 5 working days from the date of making the adjustment, EVN is responsible for reporting to the Ministry of Industry and Trade.
In case after the updated calculation, the average electricity selling price needs to be adjusted to be 10% or more higher than the current average electricity selling price or affects the macroeconomic situation, based on the method documents. The electricity price project was submitted by EVN, the Ministry of Industry and Trade presided over the inspection, review and sent it for comments to the Ministry of Finance and relevant ministries and agencies.
Based on comments from the Ministry of Finance and relevant ministries and agencies, the Ministry of Industry and Trade synthesizes and reports to the Prime Minister for consideration and comments. In case of necessity, the Ministry of Industry and Trade coordinates with relevant ministries and agencies to report to the Price Management Steering Committee before reporting to the Prime Minister.
Supervision check
The decision clearly stipulates that every year, EVN is responsible for sending the Ministry of Industry and Trade a report on electricity production and business costs that have been audited by an independent auditing unit. Based on the Electricity Production and Business Cost Report, the financial statements of EVN and member units of Vietnam Electricity Group have been audited by an independent audit agency according to regulations, the Ministry of Industry and Trade presides over , coordinates with the Ministry of Finance to check electricity production and business costs, with the participation of the Committee for Management of State Capital at Enterprises, the Central Committee of the Vietnam Fatherland Front, the Federation of Commerce and Industry Vietnamese industry, State agencies and relevant associations. In case of necessity, the Ministry of Industry and Trade requires EVN to hire an independent consultant to verify the electricity production and business cost report of Vietnam Electricity Group and its member units.
Within 30 days after the completion of the inspection, the Ministry of Industry and Trade shall publicly announce the inspection results. The test results are publicly announced on the website of the Ministry of Industry and Trade.
The contents of inspection, supervision and public announcement include: actual costs of implementing the stages (electricity generation, electricity transmission, electricity distribution - retail, electricity system dispatching and market transaction management). electric school, industry administration and management) and other expenses specified in Clause 2, Article 4 of this Decision; EVN's implemented average retail electricity price; Business results of losses and profits on EVN's electricity production and business activities; costs that have not been included in electricity prices since the most recent adjustment but are accounted for in EVN's electricity production and business costs; The costs have not been included in EVN's electricity production and business costs.
In case EVN decides to adjust the average electricity price or submits the electricity price plan to the Ministry of Industry and Trade, the Ministry of Industry and Trade shall preside and coordinate with the Ministry of Finance and relevant ministries and agencies to consider and check the reports. EVN's reports and calculations.
In case the average electricity selling price needs to be adjusted downward but EVN does not adjust it, the Ministry of Industry and Trade is responsible for requesting EVN to adjust and reduce the average electricity selling price. EVN is responsible for complying with the request of the Ministry of Industry and Trade within 5 working days from the date of receiving the request.
If errors are detected in the electricity price calculation results, the Ministry of Industry and Trade is responsible for requesting EVN to stop adjusting or re-adjust the average electricity price. EVN is responsible for complying with the request of the Ministry of Industry and Trade within 5 working days from the date of receiving the request.
Decision to assign responsibility for implementation to the Ministry of Industry and Trade; relevant ministries and agencies; General Statistics Office; EVN. This Decision takes effect from May 15, 5, replacing Decision 2024/24/QD-TTg issued on June 2017, 30.
Details of Decision 05/2024/QD-TTg, See here.
