Vietnam retail electricity tariff to be reviewed every 3 months

Media reports maintained this adding the decision 24 signed in 2017 will be replaced by decision 05, effective May 15, 2024, even if as per the new decision the interval for electricity tariff adjustments has been reduced from six to three months while the average electricity is reportedly calculated quarterly based on the cost of production.

Reports further added, if the tariffs decrease by 1 per cent or more as per the recalculated rates compared to current rates, Vietnam Electricity or EVN, which is the largest power company in the country will cut tariffs while if tariffs increase from 3 per cent to below 5 per cent, upward adjustments would reportedly be made in accordance, with reports submitted to the Ministry of Finance (MOF) and the Ministry of Industry and Trade (MOIT) for review within five working days.

The EVN would have to seek Ministry of Industry and Trade’s approval before adjusting tariffs  for increases ranging from 5 per cent to less than 10 per cent, and in case the increases exceed 10 per cent or leave significant macroeconomic implications, thorough inspections will be conducted by the Ministry of Industry and Trade, which will seek input from relevant ministries and agencies, and present the case to the Prime Minister for consideration.

Meanwhile, the Ministry of Industry and Trade has reportedly been tasked by the Prime Minister to guide the EVN in power tariff calculations, overseeing inspection and supervision procedures and implementing electricity tariff adjustments.

Fibre2Fashion News Desk (DR)