Decision 02/2023/QD-TTg: Average retail price of electricity to increase from February 3, 2023 in Vietnam

This is the content of Decision 02/2023/QD-TTg dated February 3, 2023 on the price bracket of the average retail price of electricity issued by the Prime Minister of Vietnam.

1. Scope of regulation and subjects of application of the price bracket of the average retail price of electricity in Vietnam

Decision 02/2023/QD-TTg stipulates the maximum and minimum prices of the average retail price of electricity and applies to organizations and individuals participating in electricity activities and using electricity.

Decision 02/2023/QD-TTg: Average retail price of electricity to increase from February 3, 2023 in Vietnam (Internet image)

2. Price bracket of average retail electricity price applied from February 3, 2023 in Vietnam

The price bracket of the average retail electricity price (excluding value added tax) is as follows:

- The minimum average retail price of electricity is 1,826.22 VND/kWh;

- The maximum average retail price of electricity is VND 2,444.09/kWh.

(Previously, Decision 34/2017/QD-TTg dated July 25, 2017 stipulated:

- The minimum average retail price of electricity is VND 1,606.19/kWh;

- The maximum average retail price of electricity is VND 1,906.42/kWh.)

Decision 02/2023/QD-TTg takes effect from the date of signing and replaces Decision 34/2017/QD-TTg dated July 25, 2017

3. Regulations on electricity prices and assorted charges in Vietnam

According to Article 31 of the Electricity Law 2004 (amended Electricity Law 2012), electricity prices and fees are currently regulated as follows:

- The electricity retailing prices shall be elaborated by the electricity retailing unit based on the price frame of average electricity retail price, mechanism of adjustment of price and structure of the electricity retail price table prescribed by the Prime Minister in conformity with the level of development of the electricity market, except for the case specified in clause 2 Article 62 of the Electricity Law 2004.

The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with the Ministry of Finance to elaborate the price frame of the average electricity retail price, mechanism of adjustment of price and structure of the electricity retail price table and submit them to the Prime Minister for decision.

The adjustment of the electricity retail price must be implemented publicly, transparently regarding changes of component elements relating to adjustment of price. The State uses measures to stabilize the electricity sale price in conformity with provisions of law on price.

- The brackets of electricity generation prices, electricity-wholesaling prices, electricity transmission prices, prices of auxiliary services for electrical system, charges for regulating the electric-system operation and charges for electricity market transaction administration shall be elaborated by the concerned electricity units and appraised by the electricity-regulating agency before they are submitted to the Minister of Industry and Trade, the Minister of Finance for approval under assignment of the Government, except for the case specified in clause 2 Article 62 of the Electricity Law 2004.

The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with the Ministry of Finance to guide methods to elaborate the brackets of electricity generation prices, electricity-wholesaling prices, electricity transmission prices, prices of auxiliary services for electrical system, charges for regulating the electric-system operation and charges for electricity market transaction administration.

- The electricity-generating prices under the contracts of electricity purchase with a defined term, the electricity-wholesaling prices are implemented under agreements of electricity units but not exceed the frame of electricity generation prices, electricity-wholesaling prices have been approved.

- The electricity prices for spot dealings shall be formulated at the time of transaction on the electricity markets and publicized by the electricity market transaction-administering units in accordance with the provisions of Points f and h of Clause 1, Article 21 of the Electricity Law 2004.

Nguyen Nhu Mai

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