Request to Complete the Plan for Adjustment of the Average Retail Electricity Price? What is the Current Regulation on the Average Retail Electricity Price?
What is the current average retail electricity price as regulated?
On February 03, 2023, the Government of Vietnam promulgated Decision 02/2023/QD-TTg of 2023 regarding the pricing framework for the average retail electricity price effective from February 03, 2023. Specifically:
- The minimum average retail electricity price is 1,826.22 VND/kWh;
- The maximum average retail electricity price is 2,444.09 VND/kWh.
Note: The pricing framework for the average retail electricity price does not include value-added tax (VAT).
Request to complete the plan to adjust the average retail electricity price? What is the current average retail electricity price as regulated?
Request to complete the plan to adjust the average retail electricity price?
On April 8, 2023, the Government of Vietnam promulgated Resolution 50/NQ-CP of 2023 regarding the Government Conference with localities and the regular Government meeting in March 2023.
In Resolution 50/NQ-CP of 2023, the Government of Vietnam requires ministries, agencies, and localities to closely monitor the international and regional situation, and the policy adjustments of partner countries, especially monetary, fiscal, trade, and investment policies, to proactively analyze, forecast, and develop scenarios and plans for appropriate management and response.
Additionally, it is urgent to develop plans to adjust the prices of commodities managed by the State, public services currently being implemented in the market roadmap; carefully evaluate the impact, and proactively have plans to adjust prices or submit to the competent authority for appropriate price adjustments in line with the market price level, particularly for electricity, petrol, oil, and other essential commodities, ensuring control of inflation as per the targets set by the National Assembly.
Regarding the average retail electricity price, the Government requires the Ministry of Industry and Trade to lead, cooperate with relevant agencies and localities to complete the plan to adjust the average retail electricity price in accordance with the new pricing framework and legal regulations.
Moreover, the Government tasks the Ministry of Industry and Trade with ensuring the supply of petrol and oil for the domestic market under all circumstances and managing petrol and oil prices as per regulations; urgently submit to the Government the amending and supplementing Decree Decree 95/2021/ND-CP and Decree Decree 83/2014/ND-CP on petrol and oil trading.
Along with that, the Ministry of Industry and Trade is responsible for continuing to support localities in promoting e-commerce development. Promoting consumption policies, stimulating domestic demand, and effectively exploiting the domestic market. Strengthening market management, combating smuggling, commercial fraud, and counterfeit goods.
- Tasked with continuing to expand and diversify export markets targeting new and potential markets such as India, Africa, the Middle East, Latin America, and Eastern Europe.
- Enhancing the effective exploitation of Free Trade Agreements (FTA) and promoting negotiations and signing new FTAs.
- Facilitating and strengthening digital transformation in the issuance of preferential Certificates of Origin (C/O), supporting enterprises to take advantage of the commitments in FTAs.
- Focusing on innovation and intensifying trade promotion activities.
- Promoting the development of logistics services, reducing costs, and improving the competitiveness of Vietnamese export goods.
Is it mandatory to return surplus money when collecting electricity bills or can it be deducted from the next month's bill?
According to Clause 6, Article 23 of the Electricity Law 2004 (amended by Clause 9, Article 1 of the Amended Electricity Law 2012), it is regulated as follows:
Payment of electricity bills
1. The electricity buyer must pay the full amount and on time as stated in the invoice to the electricity seller according to the electricity tariff approved by the competent state authority. Electricity payments can be made at the buyer's office, residence, or any convenient location agreed upon by both parties in the electricity purchase contract.
2. The electricity buyer who delays payment of the electricity bill must pay interest on the overdue amount to the electricity seller.
3. The electricity seller who collects surplus money must return it to the electricity buyer, including interest on the surplus amount.
4. The interest rate for overdue payments or surplus money collection is agreed upon by both parties in the contract but must not exceed the highest loan interest rate of the bank where the electricity seller has an account stated in the contract at the time of payment.
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The electricity seller that collects surplus money must return it to the electricity buyer, including interest on the surplus amount.
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