EVN was assigned to develop a plan to adjust electricity prices.

The Government Office has just issued a notice summarizing the conclusions of Deputy Prime Minister Le Minh Khai at the meeting of the Steering Committee for Price Management regarding the results of price management and control work in the first seven months of 2023.

Of particular note is the information that the Deputy Prime Minister instructed the Ministry of Industry and Trade to urgently finalize the amendment and supplementation of Decision No. 24/2017/QD-TTg dated June 30, 2017, of the Prime Minister, which stipulates the mechanism for adjusting the average retail electricity price , and report to the Prime Minister this August.

At the same time, the Ministry of Industry and Trade needs to amend Decision No. 28/2014/QD-TTg of the Prime Minister dated April 7, 2014, regulating the structure of retail electricity prices, and report to the Prime Minister in September.

The Ministry of Industry and Trade is seeking feedback on amendments to decisions related to electricity price management, such as the mechanism for adjusting the average retail electricity price (Decision 24/2017), with a view to shortening the adjustment period from every 6 to every 3 months and adding regulations on electricity price reductions.

EVN has been tasked with developing a plan to adjust electricity prices.

The agency is also revising Decision 28 on the structure of retail electricity tariffs, which is expected to reduce the retail electricity tariff from 6 to 5 tiers. The lowest price for tier 1 will be 1,728 VND/kWh and the highest (tier 5) will be approximately 3,457 VND/kWh, excluding VAT.

The Deputy Prime Minister also noted that the Vietnam Electricity Group (EVN) needs to develop a plan for adjusting electricity prices and propose an appropriate adjustment time, minimizing the impact on economic recovery and development.

EVN has also recently sent a document to the Ministry of Industry and Trade providing feedback on the draft decision to replace Decision No. 24/2017 of the Prime Minister regulating the mechanism for adjusting the average retail electricity price.

Accordingly, the mechanism for adjusting the average electricity selling price will involve increases and decreases within clearly defined margins.

Specifically, if the average electricity selling price decreases by 1% or more compared to the current average electricity selling price and within the price range, EVN will reduce the selling price accordingly, and prepare a report to the Ministry of Industry and Trade and the Ministry of Finance for inspection and monitoring.

Price increases will be implemented when the average electricity selling price increases by 3% or more. However, the authority to adjust prices will be based on the extent of the increase in the average electricity selling price.

EVN stated that the corporation agrees with a minimum adjustment period of 3 months between the last electricity price adjustment and the average electricity selling price adjustment.

EVN agrees with the plan to adjust electricity prices every 3 months . The minimum time between adjustments to the average electricity selling price is 3 months from the last price adjustment. The adjustment of the average electricity selling price must be carried out publicly and transparently.

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