This ceiling price will be applicable to coal fired thermal power plants with capacity of 2 x 600 MW. The input fuel data for price calculation is from coal dust with the coal price of VND 1,301,665/ton (including deficits, overhead fees, insurance fees, but not including transportation costs).
MOIT also regulates the ceiling electricity generation price of hydropower plants at VND 1,070/kWh (not including water resource tax, forest environmental service fee and value added tax).
At the Conference for plan execution in 2017 held in January 2017, Vietnam Electricity’s leaders notified that such an increase by 7% of the domestic coal price will increase electricity generation cost in 2017 by nearly VND 4,700 billion.
Mr. Dinh Quang Tri, Vice President of EVN, said that the current biggest challenge of EVN is that costs have been gradually increasing but electricity tariff has not been adjusted promptly. For instance coal price has increased considerably as mentioned earlier. “EVN may have to ask the Government for applying an option of deferred payments for coal in order to handle their financial problems caused when costs increase to a great extent whereas prices remain unchanged”, said Mr. Tri.
The current average electricity retail tariff is VND 1,622.01/kWh, applicable from March 16, 2015 and kept unchanged during the year 2016.
At present, MOIT has been assigned by the Prime Minister and finished its assignment to submit an average electricity retail tariff table based on calculation of input and output parameters of electricity generation and business activities in order to encourage power savings and attract investments; at the same time envisaging an appropriate time for tariff adjustment; the Ministry is requested to report to the Vice Prime Minister Mr. Vuong Dinh Hue for his consideration and decision.