Vietnam: What are the retail electricity prices for domestic purpose by 06 levels applied from November 9, 2023? Is the highest retail electricity price for domestic purpose 3,151 VND/kWH?
- What are the retail electricity prices for domestic purpose by 06 levels in Vietnam applied from November 9, 2023?
- What are the principles for increase in the average retail electricity price in Vietnam?
- What are the new regulations on retail electricity prices for domestic purpose in Vietnam according to Circular 09/2023/TT-BCT?
What are the retail electricity prices for domestic purpose by 06 levels in Vietnam applied from November 9, 2023?
On November 8, 2023, the Ministry of Industry and Trade issued Decision 2941/QD-BCT dated November 8, 2023 regulating electricity prices, which promulgates retail electricity prices for electricity users and retail electricity prices for electricity retailers.
Accordingly, the retail electricity prices for domestic purpose applied from November 9, 2023 are as follows:
Level | Use rate | New price (VND/kWh) |
1 | 0-50 kWh | 1.806 |
2 | 51-100 kWh | 1.866 |
3 | 101-200 kWh | 2.167 |
4 | 201-300 kWh | 2.729 |
5 | 301-400 kWh | 3.050 |
6 | 401 kWh and over | 3.151 |
On November 9, 2023, Vietnam Electricity Group also issued a Press Release on adjusting the average retail electricity price from November 9, 2023.
> See details here
Specifically, the average retail electricity price is 2006.79 VND/kWh (excluding value-added tax) from November 9, 2023. This adjustment is equivalent to a 4.5% increase compared to the current average retail electricity price.
Note: The above electricity prices do not include VAT.
What are the principles for increase in the average retail electricity price in Vietnam?
Pursuant to the provisions of Article 3 of Decision 24/2017/QD-TTg stipulating the mechanism for adjustment of average retail electricity price in Vietnam promulgated by the Prime Minister of Vietnam as follows:
Principles for adjustment of average retail electricity price
1. Upon the annual inspection of the prime costs for production of electricity of Vietnam Electricity (EVN), the average electricity price shall be considered and adjusted according to the unforeseen change in input parameters of all phases (including generation, transmittal, distribution – retail, administration and ancillary services in order to ensure the operation of electricity system) which are used to calculate the current average electricity price.
2. The average electricity price shall be considered and adjusted in the year upon the change in basic input parameters in the phase of electricity generation that have been used for determining the current average electricity price.
3. When there is a change in the input parameters prescribed in Clause 1 and Clause 2 of this Article resulting in decrease in the average electricity price compared to the current average electricity price, the price of electricity needs to be lowered.
4. When there is change in the input parameters prescribed in Clause 1 and Clause 2 of this Article resulting in increase in the average electricity price of 10% or above in comparison with the current average electricity price, the price of electricity needs to be raised.
5. The average electricity price may be adjusted after a period of at least 06 months as from the latest adjustment thereof.
6. EVN is authorized to rise or reduce the average electricity price within the price bracket announced by the Prime Minister.
If the average electricity price is 10% or above higher than the current average electricity price or is out of prescribed bracket of electricity price or may influence on the macroeconomic status following the calculation, the Ministry of Industry and Trade shall take charge and cooperate with the Ministry of Finance in examining, reviewing and submitting reports thereof to the Prime Minister for making decision on the adjustment of the average electricity price. The Ministry of Industry and Trade may cooperate with the Ministry of Finance to submit reports the Price Administration Steering Committee before submitting reports to the Prime Minister, where necessary.
7. The adjustment of the average electricity price must be transparent and disclosed to the public.
Thus, currently, the increase in the average retail electricity price in Vietnam must comply with the above 07 principles.
What are the new regulations on retail electricity prices for domestic purpose in Vietnam according to Circular 09/2023/TT-BCT?
On April 21, 2023, the Ministry of Industry and Trade has just issued Circular 09/2023/TT-BCT.
Accordingly, Clause 2, Article 2 of Circular 09/2023/TT-BCT has amended the regulations on retail electricity prices for tenants who are students or workers other than households applied from June 15, 2019 at Point c, Clause 4, Article 10 of Circular 16/2014/TT-BCT. To be specific:
- If a tenant enters into a lease agreement with a lease period of at least 12 months and has completed procedures for registration of temporary residence, or permanent residence (as recorded on the residence information system at electricity consumption location), the house owner or the tenant's representative shall enter into a power purchase agreement (accompanied by the house owner's commitment to make electricity bill payment);
- If the lease period is less than 12 months and the house owner fails to declare the number of occupants using electricity as regulated, the retail price of electricity for domestic purpose at level 3 (from 101 kWh to 200 kWh) shall apply to total amount of electricity measured by the electric meter.
If the house owner has completed procedures for declaration of the number of occupants using electricity in the house, the electricity seller shall decide the limit on amount of electricity according to residence information at electricity consumption locations, every four occupants shall be considered as a household for deciding the limit on amount of electricity. To be specific: 01 occupant, 02 occupants, 03 occupants and 04 occupants are regarded as 1/4 of a household, 1/2 of a household, 3/4 of a household and a household respectively.
Note: In case of change in the number of occupants, the house owner shall inform the seller to adjust the limit on amount of electricity for calculating the electricity bill.
The seller is entitled to request the buyer to provide residence information at electricity consumption locations to verify the number of occupants in the house.
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