This view was stated by the leader of the Ministry of Finance when giving opinions on the Draft replacing Decision 24/2017 on the mechanism for adjusting average retail electricity prices.
Citing regulations in the Law on Prices and the Law on Electricity, the Ministry of Finance said that the Ministry of Industry and Trade is responsible to the Government for implementing state management of electricity and electricity use, including electricity prices.
Accordingly, the Ministry of Industry and Trade is the agency in charge of developing the price framework, adjustment mechanism, retail electricity price list to submit to the Prime Minister as well as providing guidance on establishing the price framework for electricity generation, transmission, ancillary services, and dispatch fees...
Therefore, the Ministry of Finance proposes not to stipulate the coordination responsibility of this agency in the draft decision.
At the same time, the Ministry of Finance also proposed that the draft should remove the content that Vietnam Electricity Group (EVN) sends a report on the average electricity price plan to the Ministry of Finance.
The Ministry of Finance said that it only coordinates in cases of unusual fluctuations or major impacts.
Along with that, the Ministry of Finance also wants to not stipulate the responsibility for coordinating the review if the average retail electricity price increases by 5-10%.
If the average retail electricity price increases by 5-10%, the Ministry of Industry and Trade will proactively review and comment on the plan submitted by EVN. In case the electricity price increases by 10% or more, affecting the macro economy, the Ministry of Finance will be one of the ministries and branches that will comment on the price plan after the review by the Ministry of Industry and Trade.
At the same time, the Ministry of Finance also proposed not to stipulate the responsibility of this agency in reviewing and checking EVN's reports and calculations; not to be required to attend meetings, report and proactively give opinions to the presiding agency (Ministry of Industry and Trade) on the annual retail electricity price plan. The Ministry only gives opinions based on the proposal from the Ministry of Industry and Trade.
According to the Draft Decision, the electricity price may include other costs that have not been previously calculated, including exchange rate differences. The Ministry of Finance stated that the exchange rate difference calculated and allocated to the average retail electricity price means that the retail electricity price is not enough to cover the cost of electricity production and business.
Therefore, the Ministry of Industry and Trade needs to review which expenses are allowed to be included in the retail electricity price. EVN is responsible for calculating and determining the expenses that are allowed to be included, but are not currently included in the electricity price, to report to the Ministry of Industry and Trade for consideration.
Every year, the Ministry of Industry and Trade is responsible for checking, reviewing and approving cost prices (electricity production and business costs) and other costs of EVN.
Also according to the draft decision replacing Decision 24, the time for adjusting electricity prices will be shortened from 6 months to 3 months at a time. That means there will be 4 changes each year and prices will be updated quarterly according to electricity generation costs.
On November 9, the electricity price was adjusted up by 4.5% (the adjustment is under the authority of EVN). With the above price adjustment, the electricity price increased from 1,920.3 VND to the new price of 2,006.79 VND/kWh (excluding value added tax - VAT).
This is the second time electricity prices have increased in 2023. Previously, on May 4, after 4 years of no adjustment, the average retail electricity price increased by 3%, from VND 1,854.44/kWh to VND 1,920.3732/kWh (excluding VAT).
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