Adjusting retail electricity prices from November 9

11/10/2023 06:06

Vietnam Electricity Group has issued Decision No. 1416/QD-EVN dated November 8, 2023 on adjusting the average retail electricity price, accordingly the average retail electricity price is 2,006.79 VND/kWh (excluding value added tax) from November 9, 2023. This adjustment is equivalent to an increase of 4.5% compared to the current average retail electricity price.

Retail electricity price increase 4.5%

Specifically, based on Decision No. 24/2017/QD-TTg dated June 30, 2017 of the Prime Minister regulating the mechanism for adjusting the average retail electricity price; based on Document No. 915/BCT-DTĐL dated November 8, 2023 of the Ministry of Industry and Trade , on March 31, 2023, the Ministry of Industry and Trade announced the results of the inspection of EVN's electricity production and business costs in 2021 and 2022 according to the provisions of Decision No. 24/2017/QD-TTg.

The results of EVN's inspection of electricity production and business costs in 2021 and 2022 show that the cost of electricity production and business in 2022 is VND 2,032.26/kWh, an increase of 9.27% compared to 2021.

According to calculations, the cost of electricity production in 2023 will remain high, and the cost of electricity in 2023 will continue to be higher than in 2022. The cost of electricity production and business in 2023 is estimated at about 2,098 VND/kWh.

Electricity prices increased for the second time since the beginning of the year. Photo: EVN

To minimize the impact on the economy and people's lives, implementing the direction of the Ministry of Industry and Trade, Vietnam Electricity Group issued Decision No. 1416/QD-EVN dated November 8, 2023 on adjusting the average retail electricity price, accordingly the average retail electricity price is 2,006.79 VND/kWh (excluding value added tax) from November 9, 2023. This adjustment is equivalent to an increase of 4.5% compared to the current average retail electricity price.

On November 8, 2023, the Ministry of Industry and Trade issued Decision No. 2941/QD-BCT dated November 8, 2023 regulating electricity prices, including promulgating retail electricity prices for groups of electricity customers and retail electricity prices for electricity retailers.

Electricity price increase: Poor households and policy households are insignificantly affected

According to EVN, basically, this electricity price adjustment will ensure that poor households and policy families are not affected significantly.

Specifically, according to statistics, in 2022, the whole country will have over 1.27 million poor households and social policy households receiving electricity support according to the Government 's policy.

Poor households and social policy households continue to receive support according to the provisions of Decision No. 28/2014/QD-TTg dated April 7, 2014 of the Prime Minister.

In particular, poor households are supported with a monthly support level equivalent to the amount of electricity used by 30kWh/household/month.

Social policy households with electricity usage of no more than 50 kWh/month are supported with a monthly support level equivalent to the electricity usage of 30 kWh/household/month.

Electricity price increase: How much more will each customer group have to pay?

According to calculations by Vietnam Electricity Group (EVN), the average electricity price after adjustment will affect each customer group.

Specifically: 547 thousand service business customers, after changing the average price each month will pay an additional electricity bill of 230,000 VND/month.

Manufacturing customers (1,909 thousand customers), after the price change, will pay an additional 432,000 VND/month for electricity.

Administrative and career customers (681 thousand customers), after the price change, will pay an additional electricity bill of VND 90,000/month on average.

According to VGP

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