EVN is officially allowed to adjust electricity prices every 3 months.

When the average electricity price increases by 3% or more, the electricity price is allowed to be adjusted upward. The adjustment period is at least once every 3 months.

Deputy Prime Minister Le Minh Khai has signed and issued Decision 05/2024 regulating the mechanism for adjusting average retail electricity prices, replacing Decision 24/2017. The Decision takes effect from May 15.

The latest decision allows shortening the minimum time between two electricity price adjustments from 6 months to 3 months. However, this does not mean that electricity prices will be adjusted every 3 months.

According to the decision, the average electricity selling price is established based on the cost of electricity generation, cost of purchasing electricity transmission services, electricity distribution - retail, electricity system dispatch and electricity market transaction management, cost of electricity system auxiliary services, industry operation - management costs, other allocated costs and only includes costs directly serving the production and supply of electricity of Vietnam Electricity Group (EVN)...

During the year, the average electricity price is reviewed and adjusted based on updated electricity generation costs, electricity purchase costs from power plants providing ancillary services according to basic input parameters in the electricity generation stage and other costs not included in the electricity price.

When the average electricity price decreases by 1% or more compared to the current average electricity price, the electricity price is allowed to be adjusted down accordingly.

When the average electricity price increases 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 3 months from the most recent electricity price adjustment.

Regarding the mechanism for adjusting the average electricity price in the year, the Decision clearly states: In case after the updated calculation, the calculated average electricity price is lower by 1% or more compared to the current average electricity price, EVN Group is responsible for adjusting the average electricity price down to the corresponding level. Within 5 working days from the date of adjustment, EVN is responsible for preparing a report to the Ministry of Industry and Trade to preside over and coordinate with relevant ministries and agencies for inspection and supervision.

In case after the updated calculation, the average electricity price needs to be adjusted higher than the current average electricity price from 3% to less than 5%, EVN decides to adjust the average electricity price to increase by the corresponding level. Within 5 working days from the date of adjustment, EVN will prepare a report for the Ministry of Industry and Trade to preside over and coordinate with relevant ministries and agencies to inspect and monitor.

In case after the updated calculation, the average electricity price needs to be adjusted higher than the current average electricity price from 5% to less than 10%, EVN 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 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 adjustment, EVN Group is responsible for reporting to the Ministry of Industry and Trade.

In case after the updated calculation, the average electricity price needs to be adjusted to be 10% higher than the current average electricity price or affect the macro-economic situation, based on the electricity price plan submitted by EVN, the Ministry of Industry and Trade shall preside over the inspection, review and send it to the Ministry of Finance and relevant ministries and agencies for comments. Based on the comments of the Ministry of Finance and relevant ministries and agencies, the Ministry of Industry and Trade shall synthesize and report to the Prime Minister for consideration and comments. If necessary, the Ministry of Industry and Trade shall coordinate with relevant ministries and agencies to report to the Price Management Steering Committee before reporting to the Prime Minister.

Based on the comments of the Ministry of Finance and relevant ministries and agencies, the Ministry of Industry and Trade will synthesize and report to the Prime Minister for consideration and comments. If necessary, the Ministry of Industry and Trade will coordinate with relevant ministries and agencies to report to the Price Management Steering Committee before reporting to the Prime Minister.

(VTV)

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