EVN assigned to develop plan to adjust electricity price

The Government Office has just issued a notice of the conclusion of Deputy Prime Minister Le Minh Khai at the meeting of the Price Management Steering Committee on the results of price management and administration in the first 7 months of 2023.

Notably, the Deputy Prime Minister assigned the Ministry of Industry and Trade to urgently complete the amendment and supplementation of Decision No. 24/2017/QD-TTg dated June 30, 2017 of the Prime Minister regulating 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 opinions on amending decisions related to electricity price management, such as the mechanism for adjusting average retail electricity prices (Decision 24/2017) in the direction of shortening the adjustment period from 6 to 3 months at a time, and adding regulations on reducing electricity prices.

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

The agency is also amending Decision 28 on the structure of retail electricity prices, planning to reduce the retail electricity price from 6 to 5 levels. The lowest level 1 electricity price is from 1,728 VND/kWh and the highest (level 5) is about 3,457 VND/kWh, excluding VAT.

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

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

Accordingly, the mechanism for adjusting the average electricity price will increase or decrease with clearly defined amplitudes.

Specifically, in case the average electricity price decreases by 1% or more compared to the current average electricity price and within the price range, EVN will reduce the price at the corresponding level, prepare a report to the Ministry of Industry and Trade and the Ministry of Finance for inspection and supervision.

Price increases will be applied when the average electricity price increases by 3% or more. However, the authority to adjust the price increase will be based on the increase level of the average electricity price.

EVN said the group agreed with the minimum time to adjust the average electricity price being 3 months from the most recent electricity price adjustment.

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

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