Ministry of Industry and Trade proposes to adjust electricity prices every two months

(Dan Tri) - The Ministry of Industry and Trade proposed to shorten the time to adjust the average retail electricity price to 2 months instead of 3 months/time as present.

The Ministry of Industry and Trade is seeking comments on the Draft Decree regulating the adjustment time mechanism, basis for establishing and adjusting average retail electricity prices.

Accordingly, it is noteworthy that the Ministry of Industry and Trade proposed to shorten the time for adjusting the average retail electricity price to 2 months from the last change. Thus, it is expected that there will be 6 price changes per year, instead of 4 price changes as at present, according to Decision 05/2024.

In addition, the average electricity price is updated quarterly according to the cost of electricity generation. 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 2% or more, the electricity price is allowed to be adjusted up.

Vietnam Electricity (EVN) still has the right to adjust electricity prices when the average retail electricity price increases by less than 5%. In case the average electricity price needs to be adjusted up by 5-10%, EVN is allowed to adjust the price up after reporting and receiving approval from the Ministry of Industry and Trade.

In case the average electricity price needs to be adjusted to be 10% or higher than the current average electricity price, the Ministry of Industry and Trade shall inspect, review and report to the Prime Minister for consideration and comments.

The Ministry of Industry and Trade proposed adjusting electricity prices every two months (Photo: EVN).

The draft also adds a basis for determining the standard profit in calculating the average electricity selling price of the distribution - retail, operation - management stages, multi-purpose strategic hydropower plants and dependent accounting units that have not participated in EVN's competitive electricity market.

Specifically, the after-tax profit margin on equity of these stages is determined by the average 12-month term deposit interest rate for individual customers of 4 commercial banks (Vietcombank, Vietinbank, BIDV and Agribank ) as of September 30 of the previous 5 consecutive years.

Every year, EVN is responsible for publicly announcing the following: Actual costs of implementing the stages (power generation, power transmission, power distribution - retail, power system dispatch and electricity market transaction management, industry management - operation) and other expenses...

Source: https://dantri.com.vn/kinh-doanh/bo-cong-thuong-de-xuat-dieu-chinh-gia-dien-2-thang-mot-lan-20241227143212990.htm