To propose new electricity price with the highest scale of 3,356 VND/kWh in Vietnam

To propose new electricity price with the highest scale of 3,356 VND/kWh in Vietnam(Internet image)

The Ministry of Industry and Trade has just issued Official Letter 5923/BCT-DTDL to ministries, sectors, and localities for opinions on plans to improve the new electricity retail tariff structure.

For the retail electricity tariff for domestic use, the project analyzes the options for improving the structure of the electricity retail tariff, including 1 scale (living price is the same price), 3 scales, 4 scales, and 5 scales.

To propose new electricity price with the highest scale of 3,356 VND/kWh in Vietnam 

The proposed electricity price for daily life at each scale is as follows:

- Scale 1: from the first 0–100 kWh, the new electricity price is 1,753 VND/kWh (the current price is 1,678–1,734 VND/kWh).

- Scale 2: from 101-200 kWh, the proposed new electricity price is 2,014 VND/kWh (the current price is 2,014 VND/kWh).

- Scale 3: from 201-400 kWh, the proposed new electricity price is 2,424 VND/kWh (the current price is 2,536-2,834 VND/kWh).

- Scale 4: from 401-700 kWh, the proposed new electricity price is 2,871 VND/kWh (the current price is 2,927 VND/kWh).

- Scale 5: From 701 kWh or more, the proposed new electricity price is 3,076 VND/kWh (the current price is 2,927 VND/kWh).

Proposal of 2 options for calculating the cost of electricity.

**Option 1: Improve the structure of the retail electricity price list in the direction of shortening from 6 steps to 5 steps, but with a change in the proportion structure compared to the average retail price of electricity.

Specifically, scale 1 for the first 100 kWh. scale 2: 101-200 kWh; scale 3: 201-400 kWh.scale 4 ranges from 401 to 700 kWh.scale 5 from 701 kWh or more

Based on the design of the above steps, the electricity price for each scale is redesigned by the Ministry of Industry and Trade.

Thus, the Ministry of Vietnam wants to keep the current electricity price for the first step from 0 to 100 kWh in order to ensure stable electricity prices for poor households and social policy households with low electricity usage (accounting for 33.48% of households).

The difference in electricity bill revenue reduction is compensated for by households using electricity from 401-700 kWh and over 700 kWh.

Maintain the current electricity price for scales from 101-200 kWh and from 201-300 kWh. Electricity prices for scales 401-700 kWh and 700 kWh and above are designed to offset revenue for lower scales.

The advantage of this option, according to the Ministry of Industry and Trade, is that it is simple and easy for people to understand because it has been reduced from 6 scales, like the current electricity tariff structure, to 5 scales of electricity prices.

The disadvantage is that the electricity bill for households with high electricity usage of 711 kWh/month or more (accounting for about 2% of households) has to pay more.

**Option 2: The Ministry of Industry and Trade of Vietnam proposes to improve the retail electricity tariff structure in the direction of shortening from 6 steps to 4 scales as proposed by EVN and Consultants.

Specifically, scale 1 for the first 100 kWh.

Scale 2 from 101-300 kWh.

Scale 3 from 301-700 kWh.

Scale 4 from 701 kWh or more

Thus, maintaining the current electricity price for the first step from 0-100 kWh to ensure stable electricity prices for poor households, social policy households with low electricity usage (accounting for 33.48% of households), state budget support for poor households, and social policy households remains unchanged.

The difference in the reduction in electricity revenue will be compensated by households using electricity from 100-200 kWh, 301-400 kWh, and over 700 kWh. Electricity prices for scales 101-700 kWh and 700 kWh and above are designed to offset revenue for lower scales.

The advantage of this option, according to the Ministry of Industry and Trade, is simplicity in application, creating favorable conditions for electricity units in managing and calculating electricity bills, in line with the trend of improving tariff structure. electricity for daily life in some countries in the region.

The 1 scale reduction compared to the above 5-step option will partially reduce the impact of increasing electricity bills in the months of changing seasons with the majority of electricity users in the range of 100-300 kWh.

The Ministry of Industry and Trade of Vietnam said that after analyzing the disadvantages compared to the above 5-scale plan, the 4-scale option will increase the electricity bill payable for households with a usage scale of 119-232 kWh/month and households with low electricity consumption. use over 806 kWh/month.

However, according to preliminary assessment, the impact of the electricity bill increase for households with a usage rate of 119–232 kWh/month is not large, with the increased electricity bill only going up to 12,100 VND/month/household. The equivalent corresponding increase in electricity bill is 3.25%.

See more at Official Dispatch 5923/BCT-DTDL 2022.

Chau Thanh

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