In a recent document sent to the Ministry of Justice regarding the appraisal of the draft decision of the Prime Minister on the structure of the new electricity price list, replacing Decision 28 of 2014, the Ministry of Industry and Trade proposed to shorten the household electricity price list from 6 levels to 5 levels.
Ministry of Industry and Trade proposes retail electricity price list with only 5 levels
Specifically, for the first 100 kWh, the electricity price is 1,806.11 VND/kWh. For the second level from 101 - 200 kWh, the electricity price is 2,167.33 VND/kWh. For the third level from 201 - 400 kWh, the electricity price is 2,729.23 VND/kWh. For the fourth level from 401 - 700 kWh, the electricity price is 3,250.99 VND/kWh. For the fifth level from 701 kWh and above, the highest electricity price is 3,612.22 VND/kWh.
According to the Ministry of Industry and Trade, the proposal to shorten the electricity price list to 5 levels comes from the recommendation of Vietnam Electricity Group (EVN) and the consulting unit to have a simple electricity price list that is easy for people to understand and manage.
Compared to the 6-tier electricity price list previously developed by the Ministry of Industry and Trade, tier 1 was raised to 100 kWh to meet the increasing electricity demand of the people. Meanwhile, tier 5, households using a lot of electricity will have to pay a very high price but it will not affect many households (only about 2% of households using electricity).
Regarding the prices in the 5-tier electricity price list, the Ministry of Industry and Trade believes that the price increase between the levels is reasonable, the difference between the first and last levels is 2 times, which is consistent with the general trend of countries around the world to encourage the use of electricity economically and effectively through increasing the price difference between the first and last levels.
According to the Ministry of Industry and Trade, combining the levels together to increase the gap in electricity consumption between levels and widen the gap in consumption levels, aims to reflect the actual situation of electricity consumption and encourage more economical and efficient use of electricity, while at the same time partially limiting the increase in electricity bills during the changing seasons.
Ministry of Industry and Trade proposes to shorten retail electricity price list from 6 levels to 5 levels
In addition, in the document sent to the Ministry of Justice, the Ministry of Industry and Trade proposed to add a plan to calculate electricity prices for 2 customer groups including electric vehicle charging activities with 3 options.
In particular, the Ministry of Industry and Trade recommends choosing option 2, calculating the electricity price for electric vehicle charging activities according to the commercial electricity price. This is also the option supported and proposed for application by EVN and the Vietnam Association for Consumer Protection.
According to the Ministry of Industry and Trade, this option has the advantage of not having to add new subjects to the current retail price structure, but the disadvantage is that it can affect the electric vehicle development policy by increasing charging costs.
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