According to Decision No. 05/2024/QD-TTg, the average electricity selling price is established based on the costs of electricity generation, purchasing power transmission, distribution - retail, dispatching the power system and managing electricity market transactions, supporting services of the power system, industry operating and management, and other allocated costs, and only include costs directly serving the power production and supply of Vietnam Electricity (EVN) to ensure the ability to operate, supply electricity, and meet investment needs according to the approved plan, in which the costs of each stage take into account the prescribed price deductions.
Every year, after checking EVN's power production and business costs in years N-2, the average electricity selling price in year N is reviewed and adjusted according to objective fluctuations in input parameters of all stages (power generation, transmission, distribution - retail, power system dispatching and market transaction management, power system support services, and industry operation - management) and the allocation of other costs not included in the electricity price.
During the year, the average electricity selling price is considered and adjusted based on the updating costs of electricity generation and purchase from power plants providing auxiliary services according to basic input parameters in the electricity generation stage and other costs not included in the electricity price.
When the average electricity selling price decreases by 1% or more compared to the current price, the electricity price is allowed to adjust accordingly; When the average electricity selling price increases by 3% or more compared to the current price, the electricity price is allowed to increase; The average electricity price adjustment time is at least 3 months from the most recent electricity price adjustment.
Illustration
In case the average electricity selling price needs to be adjusted to be 10% or higher than the current price or affects the macroeconomic situation, the Ministry of Industry and Trade (MOIT) shall preside and coordinate with relevant ministries and agencies to inspect, review, and report to the Prime Minister for consideration and comments.
The adjustments to the average electricity selling price must be made publicly and transparently.
Also according to this Decision, in case the calculated average electricity selling price decreases by 1% or more compared to the current price, EVN is responsible for reducing the price by a corresponding level. Within 05 working days from the date of adjustment, EVN is responsible for preparing documents to report to MOIT to preside and coordinate with relevant ministries and agencies for inspection and supervision.
In case the average electricity selling price needs to be adjusted to increase from 3% to less than 5% compared to the current price, EVN decides to adjust the price to a corresponding level. Within 05 working days from the date of adjustment, EVN is responsible for preparing documents to report to MOIT to preside and coordinate with relevant ministries and agencies for inspection and supervision.
In case the average electricity selling price needs to be adjusted to increase from 5% to less than 10% compared to the current price, EVN is allowed to adjust the price to a corresponding increase after reporting and receiving approval from MOIT. Within 15 working days from the date of receiving the complete price plan dossier from EVN, MOIT is responsible for responding in writing for EVN to implement. Within 05 working days from the date of adjustment, EVN is responsible for reporting it to MOIT.
In case the average electricity selling price needs to be adjusted to increase by 10% or more compared to the current price or affects the macroeconomic situation, based on the electricity price plan dossier submitted by EVN, MOIT presides over inspection, review, and sends comments to the Ministry of Finance (MOF) and relevant ministries and agencies. Based on comments from MOF and relevant ministries and agencies, MOIT shall synthesize and report to the Prime Minister for consideration and comments. In case of necessity, MOIT coordinates with relevant ministries and agencies to report to the Price Management Steering Committee before reporting to the Prime Minister.
The Prime Minister assigned MOIT to be responsible for guiding EVN to calculate the average electricity selling price according to regulations; Implement electricity price adjustments; And preside over inspection and supervision according to regulations.
This Decision takes effect from May 15, 2024, replacing Decision No. 24/2017/QD-TTg dated June 30, 2017, of the Prime Minister stipulating the mechanism for adjusting the average retail electricity price.