MoIT Announces Draft Of Electricity Retail Price

On March 5, the Ministry of Industry and Trade(MoIT) disclosed draft of management mechanism and adjustment of electricity retail prices with following 3 main points:

1.  When the input factors make the electricity prices to increase 2-5% and in the price frame, Vietnam Electricity Group (EVN) is allowed to increase electricity prices in the corresponding level after getting approval from MoIT.

2. When input parameters  make electricity to increase more than 5% or the average retail electricity price after adjustment surpasses the price frame, EVN has to report to MoIT and the Ministry of Finance (MoF) to evaluate.

Within 5 working days after receiving the report of EVN, MoF is responsible for the evaluation and submit comments to the MoIT; within 5 working days after receiving the evaluation from MoF,  MoIT has to present the Prime Minister for consideration and approval.

 EVN is allowed to adjust electricity retail prices by 5% if Prime Minister has not answered within 15 working days since the submission of MoIT.

3. When inputs make the electricity prices by 5% or more lower than the current electricity selling prices, EVN is allowed to cut electricity selling prices in a correspondent level and EVN has to submit MoIT and MoF for evaluation.

MoIT is responsible for monitoring the implementation of electricity price adjustment and is allowed to invite independent consultants to examine records of electricity price adjustment.

MoIT may require EVN to halt electricity prices hike or adjust for the next turn.

MoF is responsible for examining data, changes in the electricity selling price plan.

In 2012, electricity prices were adjusted 2 times and current average electricity retail selling prices is VND1,437/ kWh.

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