ELECTRICITY PRICE TO BE ON THE RAISE AT MINIMUM RATE OF 7%
On November 19, 2013, the Prime Minister issued Decision No. 69/2013/QD-TTg detailing the mechanism for adjustment of the average electricity retail price levels, which allows average electricity selling price to be adjusted within the price bracket specified by the Prime Minister and only adjusted to increase at level of 7% or more in comparison with the current average electricity price. Duration for adjusting average electricity selling prices between the two consecutive times is at least 06 months. The adjustment of average electricity selling prices must be implemented publicly and transparently. As necessary, the State uses the Fund of electricity price stability and other measures in accordance with regulations in order to stabilize electricity selling price aiming to minimize disadvantage impacts on the macro economy stability and social security.
Annually, the Vietnam Electricity Corporation shall formulate plan of electricity selling price to submit to the Ministry of Industry and Trade, and the Ministry of Finance. Based on results of examination, calculation of the cost price of electricity production and business in fiscal year as prescribed by law, situation of electricity production and business of the Vietnam Electricity Corporation and economic-social conditions, the Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with the Ministry of Finance in considering the plan of average electricity selling price. Concretely, if the average electricity selling price in need of adjustment increases from 7% to less than10% in comparison to the current average electricity selling price and in the set price bracket, the Vietnam Electricity Corporation is permitted to adjust the average electricity selling price at the respective level and having acceptance of the Ministry of Industry and Trade. If the average electricity selling price increases 10% or more in comparison to the current average electricity selling price and beyond the set price bracket, the Ministry of Industry and Trade will report to the Prime Minister after having the appraisal opinion of the Ministry of Finance.
This Decision takes effect on January 10, 2014.
