According to Vietnamnet, Vietnam Electricity (EVN) submitted a formal document to the Ministry of Industry and Trade (MoIT) on August 21 with recommendations on a draft decision aimed at replacing Decision 24, which outlines the mechanism for adjusting the average retail electricity price.
Under the proposed framework, the average electricity price will be evaluated and adjusted based on objective fluctuations in input parameters across all stages of electricity production and distribution. This includes generation, transmission, distribution, and support services for the power system.
The new pricing mechanism will incorporate both increases and decreases within defined ranges, meaning, if the average electricity price drops by 1 per cent or more compared to the prevailing average price, EVN will lower its prices.
In the case of a price increase, adjustments will be applied if the average electricity price rises by 3 per cent or more. However, the authority to determine the extent of the increase will be based on the magnitude of the rise in the average electricity price.
For instance, if the need for an adjustment arises from a 3 per cent to under 5 per cent increase in the average electricity price compared to the current average and within the specified range, EVN will be authorised to make the corresponding increase. In these circumstances, EVN will compile reports for examination and oversight by the MoIT, the Ministry of Finance (MoF), and the State Capital Management Committee in Enterprises.
If the requirement for an adjustment involves an increase of 5 per cent to under 10 per cent compared to the current average price and within the prescribed range, the MoIT will have the authority to decide upon receiving EVN's proposed pricing plans.
In cases where the adjustment calls for an increase of 10 per cent or more compared to the current average price, or necessitates an adjustment outside the prescribed range, the MoIT, in collaboration with the MoF and the Commission for the Management of State Capital at Enterprises, will conduct examinations, reviews, and submit a report to the prime minister for consideration.
The minimum interval for adjusting the average electricity price is three months from the date of the most recent price adjustment. All adjustments to the average electricity price must be carried out transparently and in a publicly accessible manner.
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