Electricity prices may be adjusted every two months.

The Ministry of Industry and Trade proposes adjusting electricity prices every two months, with an average increase in input electricity prices of 2% or more, under a mechanism that ensures EVN makes a profit when determining its annual profit margin.

Electricity prices may be adjusted every two months - Photo courtesy.

The Ministry of Industry and Trade has just released a draft decree stipulating the mechanism, adjustment time, basis for establishing and adjusting the average retail electricity price for comments from ministries and agencies, in order to implement the Electricity Law which will take effect from February 1, 2025.

EVN will announce the cost of electricity.

According to the Ministry of Industry and Trade, the newly drafted regulations will amend and supplement provisions related to the disclosure of electricity production and business costs. Specifically, the Vietnam Electricity Group (EVN) will be responsible for reporting electricity production and business costs, hiring independent auditors, and publicly disclosing the costs and average electricity selling price, instead of the Ministry of Industry and Trade being responsible for disclosing this information.

Publicly disclosed costs include the actual costs incurred in each stage (power generation, transmission, distribution and retail sales, power system dispatch and electricity market transaction management, industry operation and management) and other expenses. This also includes the average retail electricity price, profit and loss figures, and costs not included in the electricity price...

The new draft also amends the principles regarding the level and timing of adjustments to the average electricity selling price.

The objective is to promptly reflect actual fluctuations in input parameters, compensate for reasonable and legitimate costs to preserve and develop capital, and avoid abrupt adjustments in electricity prices, which may be made multiple times a year.

Accordingly, when the average electricity selling price increases by 2% or more compared to the current average electricity selling price, the electricity price is allowed to be adjusted upwards. The minimum time for adjusting the average electricity selling price is two months from the last electricity price adjustment.

This adjustment is therefore lower than the current regulations, where electricity prices are changed every three months with input costs increasing by 3% or more. However, the regulation of reducing electricity prices by 1% or more compared to the current price will remain unchanged, and EVN is responsible for a corresponding reduction.

Adjusting electricity prices to ensure EVN makes a profit, determining the annual profit margin.

In cases where the average electricity selling price needs to be adjusted to be 10% or more higher than the current average electricity selling price, or if it affects the macroeconomic situation, the Ministry of Industry and Trade will take the lead, coordinating with relevant ministries and agencies to inspect, review, and report to the Prime Minister for consideration and comments.

The formula for determining the average retail electricity price remains essentially the same as in the previous decision, but some price-determining components have been modified and supplemented.

This is the total estimated annual cost and profit from EVN's multi-purpose strategic hydropower plants and dependent accounting power plants before their participation in the competitive electricity market, which will be issued by the Ministry of Industry and Trade.

Additionally, regulations are added to establish the basis for determining the annual profit margin for electricity distribution and retail; industry operation and management; strategic multi-purpose hydropower plants; and other dependent power plants during the period before participation in the competitive electricity market.

This addition aims to ensure reasonable profits to preserve and grow the business capital of the enterprise, while also ensuring clarity, transparency, and a basis for implementation.

Source: https://tuoitre.vn/gia-dien-co-the-dieu-chinh-2-thang-lan-20241227145015305.htm