Shorten from 6 steps to 5 steps

In the dossier sent to the Ministry of Justice for appraisal of the draft Decision of the Prime Minister regulating the structure of retail electricity prices, the Ministry of Industry and Trade proposed to improve the structure of retail electricity prices for households, shortening from 6 levels to 5 levels as proposed by EVN and the Consultant, with changes in the structure of proportion compared to the average retail electricity price.

Specifically:

+ Level 1: for the first 100 kWh

+ Level 2: for kWh from 101 - 200

+ Level 3: for kWh from 201 – 400

+ Level 4: for kWh from 401 - 700

+ Level 5: for kWh from 701 and up

With this proposal, household electricity prices will be as follows:

Level Adjustment structure compared to current average retail electricity price (VND 2,103.1159/kWh) Electricity prices according to new proposal (kWh)
Tier 1: First 0-100kWh 90% 1,892.8 VND
level 2: for kWh from 101-200 108% 2,271.5 VND
level 3: For kWh from 201-400 136% 2,860.2 VND
level 4: For kWh from 401-700 162% 3,407 VND
level 5: for kWh from 701 and up 180% 3,785.6 VND

Thus, the Ministry of Industry and Trade proposes to maintain the current electricity price for the first level from 0-100 kWh to ensure stable electricity prices for poor households and social policy households with low electricity usage (accounting for 33.48% of households). The difference in reduced electricity revenue will be compensated for by households using electricity from 401-700 kWh and over 700 kWh.

In addition, current electricity prices for levels from 101-200 kWh and 201-300 kWh will also remain unchanged.

However, the electricity price for levels from 401-700 kWh and from 700 kWh and above is designed to increase the electricity price structure to offset revenue for lower levels and encourage savings in electricity use.

Thus, compared to current household electricity prices, customers using 400 or more units will have to pay higher electricity prices.

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Current household electricity price list.

Tourist accommodation establishments are subject to electricity production prices.

In addition to household electricity prices, the Ministry of Industry and Trade also proposed separating "tourist accommodation" customers from other business customers and applying a price structure equal to that of production customers.

According to the results of a wide consultation on the revenue compensation plan in the case of applying the electricity price for tourist accommodation establishments to the retail electricity price for export industries, this agency said that the majority of 11/18 opinions chose Option 2 (The difference in the missing electricity sales revenue is allocated to all groups of electricity customers); 7/18 opinions chose Option 1 (The difference in the missing electricity sales revenue, due to adding the tourist accommodation establishment customer group to the production price, is compensated for in the electricity price for off-peak hours of the production group).

According to the report and calculation of EVN and the Consultant in the Project on improving the structure of the retail electricity price list, the current electricity price for production does not accurately and sufficiently reflect the cost of electricity production and business (lower than the allocated cost). The Ministry of Industry and Trade believes that Option 1 can be applied immediately to ensure a step-by-step roadmap to accurately and fully calculate the cost for the production customer group.

Accordingly, the revenue shortfall according to the 2023 data update due to the addition of the "tourist accommodation" customer group can be considered to be compensated from the electricity selling price of the manufacturing customer group, increasing the retail electricity price structure of the manufacturing industry from 1% to 2% compared to the average retail electricity price and manufacturing enterprises will be affected by the increase in electricity prices from 2.41% to 3.34% for manufacturing industries.

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Retail electricity tariffs are being proposed for improvement. Photo: Hoang Giam

Add customer group producing at 220 kV voltage level

According to EVN's report, customers currently purchasing electricity at 220 kV and 500 kV voltage levels (connected to the transmission grid) are power plants (purchasing electricity from the grid for self-use, starting...

According to statistical data on electricity production and business costs in the period 2010 - 2023, the cost at the 220 kV voltage level accounts for 84.6% of the average cost. Based on the allocation of costs at peak and off-peak hours into the current average retail electricity price, the structure of retail electricity prices at voltage levels up to 220 kV is as follows:

- Normal hourly electricity price: 84% of average retail electricity price (1,766.6 VND/kWh)

- Off-peak electricity price: 53% of average retail electricity price (1,114.6 VND/kWh)

- Peak hour electricity price: 146% of average retail electricity price (VND 3,073.4/kWh)

It is expected that in the near future, there will be more customers buying electricity at voltage levels up to 220 kV for production purposes. According to the Ministry of Industry and Trade, customers buying electricity at voltage levels up to 220 kV do not use the distribution grid (up to 110 kV), so adding this group of customers to the Draft Decision on the basis of allocating electricity production and business costs, excluding costs of electricity distribution and retail, is consistent with the principle of ensuring that electricity prices accurately reflect costs.