Accordingly, the price range of the average retail price of electricity (excluding VAT) is as follows: the minimum average retail price of electricity is VND1,826.22/kWh; The maximum average retail price of electricity is VND 2,444.09/kWh.

Compared to Decision 34/2017/QD-TTg, the price bracket of the average retail electricity price was adjusted as follows: the minimum average retail electricity price was increased by VND 220.03/kWh (the old price was VND 1,606.19/kWh); the maximum average retail price of electricity increased by VND 537.67/kWh (the old price was VND 1,906.42/kWh).

Simultaneously with strong fluctuations in the parameters of the price class calculation, the electricity generation and commercial costs as well as the levy obligation, which were not included in the average end consumer electricity price.

The Department of Industry and Trade takes primary responsibility for calculating and adjusting the price range of the average retail electricity price and coordinating with the Treasury and submits it to the Prime Minister for consideration and decision.

Electricity of Vietnam (EVN) is responsible for monitoring and reporting to the Ministry of Industry and Trade and the Ministry of Finance when the parameters used to calculate the price range of the average retail price of electricity change significantly.

Resolution 02/2023/QD-TTg comes into force on February 3rd, 2023 and replaces resolution 34/2017/QD-TTg of July 25th, 2017.

Earlier, at a conference of the Committee on the Management of State Capital in Enterprises in Hanoi at the end of December, those responsible for EVN said that from the beginning of 2022, due to fluctuations in the price of fuels such as coal and oil , gas … worldwide, the cost of generating electricity and EVN’s electricity purchases are very high, while the price of electricity has not increased since 2019. According to the approval of the Ministry of Industry and Trade, the results of production and operations of EVN in 2022 may lose up to VND 64.805 billion.

According to the forecast, in 2023 the world fuel price will not show any signs of falling to the average level of 2021, the USD exchange rate will still rise, the share of cheap energy sources (e.g. hydropower) will decrease, and the share of cheap, expensive electricity sources will increase sell…

In view of the above situation, EVN executives said that if the financial imbalance persists, there is a risk that EVN has no cost source to operate; there is a risk of not having any money in the near future to pay electricity sellers to EVN. Accordingly, the credit rating of EVN is underestimated; It will also be extremely difficult to get bank loans for investment projects in power plant construction.

This situation will severely affect the country’s energy security. Therefore, in order to effectively contribute to the socio-economic recovery and development program, EVN proposes to apply a market mechanism for electricity prices when the input factors increase, the electricity price increases and vice versa, timely through an automatic mechanism similar to the gasoline price adjustment mechanism.

In addition, EVN, as a company playing an important role in electricity supply, suggests that the government consider entrusting this group and power generation companies with the implementation of important energy source projects to ensure safety and security. At the same time, the government is recommended to have mechanisms and policies in place so that national security-critical power source projects and power grids, which are on the state’s priority list, can take ODA loans and lend them back to EVN without liability risk.

EVN also suggested that the responsible authorities approve the Power Plan VIII soon, so that both EVN and investors have a basis to implement electricity and grid projects to ensure the supply of electricity in the coming years.