Ministry proposes electricity price be adjusted every three months
Ministry proposes electricity price be adjusted every three months
The Ministry of Industry and Trade has proposed the average retail price of electricity be reviewed for adjustment every three months instead of six at present.
Workers of Việt Nam Electricity check the transmission system. The average electricity price is proposed to be reviewed for adjustment every three months instead of six at present. — VNA/VNS Photo Huy Hùng |
This suggestion was raised in a draft on amending the mechanism for adjustments which was recently made public for comments.
Việt Nam Electricity (EVN) was allowed to adjust the price at the corresponding rate between 3 to 5 per cent of the suggested limits.
An increase from 5 per cent to below 10 per cent would be decided by the Ministry of Industry and Trade and by 10 per cent or higher by the Prime Minister.
Notably, if the production cost decrease by 1 per cent or more below the average price, EVN will be responsible for reducing the retail electricity prices at corresponding rates.
After an increase of 3 per cent on May 4, the current average retail electricity price is VNĐ1,920.37 per kWh.
Nguyễn Thị Tuyết Mai, Deputy Head of the Electricity Prices and Fees Department said that the review for adjusting the price every three months aims to reflect fluctuations in production costs and to develop a roadmap for regulating electricity prices without shocking adjustments.
Mai stressed that any increases must ensure the prices remains within the regulated bracket.
Mixed opinions have arisen surrounding the proposal of adjusting the price every three months.
Economic expert Ngô Trí Long said that the current regulation on the minimum adjustment period of six months was reasonable, although shortening it to three would not cause a stir among the people.
He also questioned whether it was reasonable to change when the current regulation had not been implemented properly.
Đào Nhật Đinh, an energy expert, said that Việt Nam should set up an independent energy council to evaluate the production costs of electricity. This council should meet every three months and decide whether or not to adjust electricity prices.
The Ministry of Industry and Trade recently proposed reducing the pricing tiers from six to five which would narrow the gap between the first steps and expand the pricing range for higher consumption.
