The Electricity of Vietnam Group (EVN) may be authorised to increase power prices by 5% upon an equivalent rise in the generation costs, according to a draft law.
EVN may be authorised to increase power prices by 5% upon an equivalent rise in the generation costs
The Ministry of Industry and Trade (MoIT) delivered the amended and supplemented Draft Law on Electricity at the National Assembly’s meeting on May 31.
The draft law said that retail power prices may be adjusted based on the average selling prices. The minimum period between changes to power prices would be three months.
EVN may be allowed to apply a 5% increase in the average power prices for the following year if the estimate for the next year indicates a rise 5% compared to the current average.
The group would have to seek approval from the Ministry of Industry and Trade for a hike of over 5% in the average power price for the following year, the regulation recommended.
The draft bill suggested that EVN be authorised to increase selling prices by 5% upon a correspondent rise in fuel prices and foreign exchange rates after making a report to the MoIT.
If fuel prices and foreign exchange rates increase by over 5%, EVN may have to wait for a decision by the Ministries of Industry and Trade and Finance for a 15-day period. After that time, EVN might temporarily be allowed to increase prices by 5% if it has yet to receive any reply from the ministries.
According to the draft Law on Prices, which was delivered at the NA meeting on May 28, the Government may decide prices for power transmission and support services, as these are State-monopolies.
Meanwhile, the Government would only set a framework for power generation, wholesale and retail prices and allow power companies to decide detailed prices.