Vietnam: Formula to calculate the annual average electricity price

16:30, 03/07/2017

The Prime Minister of Vietnam has just approved Decision No. 24/2017/QĐ-TTg providing for the mechanism for adjustment of average retail electricity price.

There are new contents on the mechanism for adjustment of annual average electricity price, specifically as follows:

- The Vietnam Electricity (EVN) shall calculate the average electricity price according to the formula mentioned in Clause 2 Article 4 of Decision No. 24/2017/QĐ-TTg (current regulations do not regulate this formula);

- If the average electricity price needs to rise from 3% to below 5% in comparison with the current average electricity price and is in the prescribed bracket of electricity price, EVN shall make decision on increase of the average electricity price to the corresponding level;

- If the average electricity price needs to rise from 5% to below 10% (from 7% to below 10% according to current regulations) in comparison with the current average electricity price and is in the prescribed bracket of electricity price, EVN is allowed to rise the average electricity price to the corresponding level after submitting report and obtaining approval thereof from the Ministry of Industry and Trade.

View the formula to calculate the annual average electricity price at Decision No. 24/2017/QĐ-TTg effective from August 15, 2017, which replaces Decision No. 69/2013/QĐ-TTg dated November 19, 2013.

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