On March 26, 2024, the Prime Minister issued Decision No. 05/2024/QĐ-TTg on the mechanism for adjusting the average retail electricity price.
The decision clearly states the principle of adjusting the average electricity selling price and the mechanism for checking the annual electricity production business cost.
- Principle of adjusting the average electricity selling price
Within the year, the average electricity selling price is considered for adjustment based on updating the cost of electricity generation, the cost of buying electricity from power plants providing auxiliary services according to basic input parameters in electricity generation and other costs not yet included in the electricity price.
- In case the average electricity selling price decreases by 1% or more compared to the current average electricity selling price, the Vietnam Electricity Corporation is responsible for reducing the average electricity selling price at the 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, the Vietnam Electricity Corporation decides to adjust the increase in the average electricity selling price at the corresponding level.
- 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, the Vietnam Electricity Corporation is allowed to adjust the increase in the average electricity selling price at the corresponding level after reporting and being approved by 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 submitted by the Vietnam Electricity Corporation, the Ministry of Industry and Trade presides over the inspection, review and sends for comments from the Ministry of Finance and related Ministries and agencies.
The minimum time to adjust the average electricity selling price is 03 months from the last electricity price adjustment.
The average electricity selling price is calculated according to the provisions in Article 4 of this Decision.
2.Check the annual electricity production business cost
Every year, the Vietnam Electricity Corporation is responsible for sending the Ministry of Industry and Trade a report on the audited electricity production business cost performed by an independent audit unit. Based on the report on the cost of electricity production business, the financial report of the Vietnam Electricity Corporation and its member units that have been audited by an independent audit agency as prescribed, the Ministry of Industry and Trade presides over, coordinates with the Ministry of Finance to check the cost of electricity production business, with the participation of the State Capital Management Committee at Enterprises, the Central Committee of the Vietnam Fatherland Front, the Vietnam Chamber of Commerce and Industry, state agencies and related associations.
Within 30 days after the end of the inspection, the Ministry of Industry and Trade publicly announces the inspection results. The inspection results are publicly announced on the Electronic Information Page of the Ministry of Industry and Trade."
