The average retail electricity price is VND 2,006.79/kWh (excluding VAT) from November 9, 2023. This adjustment is equivalent to an increase of 4.5% compared to the current average retail electricity price.
On the afternoon of November 9, Vietnam Electricity Group ( EVN ) announced the adjustment of the average retail electricity price.
Accordingly, the average retail electricity price from November 9, 2023 will increase from VND 1,920.37/kWh to VND 2,006.79/kWh (excluding value added tax). This adjustment is equivalent to an increase of 4.5% compared to the current average retail electricity price.
EVN representative said that on March 31, 2023, the Ministry of Industry and Trade announced the results of the inspection of EVN's electricity production and business costs in 2021 and 2022 according to the provisions of Decision No. 24/2017/QD-TTg. The results of the inspection of EVN's electricity production and business costs in 2021 and 2022 showed that the cost of electricity production and business in 2022 was VND 2,032.26/kWh, an increase of 9.27% compared to 2021.
According to calculations, the cost of electricity production in 2023 will remain high, and the cost of electricity in 2023 will continue to be higher than in 2022. The cost of electricity production and business in 2023 is estimated at about 2,098 VND/kWh.
However, EVN representative affirmed that basically, this electricity price adjustment will ensure that poor households and policy families are not affected significantly.
According to statistics, in 2022, the whole country will have over 1.27 million poor households and social policy households receiving electricity support according to the Government's policy. Poor households and social policy households will continue to receive support according to the provisions of Decision No. 28/2014/QD-TTg dated April 7, 2014 of the Prime Minister, in which poor households will receive support with a monthly support level equivalent to the amount of electricity used by 30kWh/household/month.
In addition, social policy households with electricity usage of no more than 50 kWh/month are supported with a monthly support level equivalent to the electricity usage of 30 kWh/household/month.
At the press conference held by the Government Office on November 4, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that the current electricity price management is carried out according to the provisions of Decision No. 24/2017/QD-TTg dated June 30, 2017 of the Prime Minister, which specifically stipulates the method of establishing the average retail electricity price including the costs of the stages in the process of electricity production and supply (power generation, power transmission, electricity distribution-retail, industry management-operation and auxiliary services of the power system), ensuring that the reflection of the electricity production and business costs of the Vietnam Electricity Group is correct and sufficient.
The mechanisms for adjusting the average retail electricity price are specifically regulated in Decision No. 24/2017/QD-TTg, accordingly, if input parameters fluctuate causing the average electricity price to increase by 3% or more compared to the current price, it will be considered for an increase (if it decreases, it will be adjusted down accordingly).
Mr. Tan also emphasized that electricity is a commodity present in most socio-economic activities and life, and adjusting electricity prices will affect the whole society, so Decision No. 24/2017/QD-TTg also stipulates that it is necessary to report to the Prime Minister for comments in case of impact on the macro economy. Therefore, for a number of years, electricity prices have been kept stable to ensure the macro economy, control inflation and people's lives.
"Implementing the direction of the Government Standing Committee, the Ministry of Industry and Trade is studying to amend Decision No. 24/2017/QD-TTg and has submitted it to the Prime Minister to develop a mechanism to adjust electricity prices according to a suitable step-by-step roadmap," said Deputy Minister Nguyen Sinh Nhat Tan. This is the second time this year that electricity prices have been adjusted.
Previously, on May 4, Vietnam Electricity Group (EVN) adjusted the average retail electricity price to VND1,920.37/kWh (excluding value added tax). This adjustment is equivalent to a 3% increase compared to the current average retail electricity price.
Duc Duy (Vietnam+)
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