Vietnam: What are the retail electricity prices for manufacturing industries from November 9, 2023? Is the highest price 3,314 VND/kWh?
What are the retail electricity prices for manufacturing industries in Vietnam 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 manufacturing industries in Vietnam from November 9, 2023 are determined in Section 1 of the Appendix issued with Decision 2941/QD-BCT in 2023 as follows:
No. | Case | Electricity prices (VND/kWh) |
1.1 | Voltage level of 110 kV or higher | |
a) Normal hours | 1.649 | |
b) Off-peak hours | 1.044 | |
c) Peak hours | 2.973 | |
1.2 | Voltage level from 22 kV to less than 110 kV | |
a) Normal hours | 1.669 | |
b) Off-peak hours | 1.084 | |
c) Peak hours | 3.093 | |
1.3 | Voltage level from 6 kV to less than 22 kV | |
a) Normal hours | 1.729 | |
b) Off-peak hours | 1.124 | |
c) Peak hours | 3.194 | |
1.4 | Voltage level below 6 kV | |
a) Normal hours | 1.809 | |
b) Off-peak hours | 1.184 | |
c) Peak hours | 3.314 |
Thus, the retail electricity prices for manufacturing industries in Vietnam from November 9, 2023 are specified above.
In particular, the lowest price is 1,044 VND/kWh for a voltage level of 110 kV or higher during off-peak hours; the highest price is 3,314 for a voltage level below 6 kV during peak hours.
What are the regulations on normal hours, peak hours, and off-peak hours in Vietnam?
Pursuant to the provisions in Clause 1, Article 5 of Circular 16/2014/TT-BCT as follows:
“Time of day” based electricity price
1. Time of day in this context is defined as follows:
Normal hours: From Mondays to Saturdays+ From 04:00 to 09:30 (Five hours and 30 minutes);
+ From 11:30 to 17:00 (Five hours and 30 minutes);
+ From 20:00 to 22:00 (two hours)
- Sunday
From 04:00 to 22:00 (18 hours).
b) Peak hours: from Mondays to Saturdays
+ From 09:30 to 11:30 (two hours);
+ From 17:00 to 20:00 (three hours).
- Sunday: No Peak hours
c) Off-peak hours
All days of week: from 22:00 to 04:00 the following morning (six hours).
Thus, the time of electricity use during the day is regulated as follows:
Time frame | Regulation |
Normal hours | - From Mondays to Saturdays + From 04:00 to 09:30 (Five hours and 30 minutes) + From 11:30 to 17:00 (Five hours and 30 minutes); + From 20:00 to 22:00 (two hours) - Sunday From 04:00 to 22:00 (18 hours). |
Peak hours | - From Mondays to Saturdays + From 09:30 to 11:30 (two hours); + From 17:00 to 20:00 (three hours). - Sunday: No Peak hours |
Off-peak hours | All days of week: from 22:00 to 04:00 the following morning (six hours). |
Besides, “Time of day” based electricity price (hereinafter referred to as the three-rate manner) shall be applied to the following subjects:
- Buyers who use electricity for production, business and services supplied via 25kVA+ transformer or pledge to use at least 2,000 kWh per month on average in three consecutive months;
- Retailers in industrial parks;
- Retailers for non-domestic purposes in commercial, service and domestic complexes;
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.
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