Electricity of Vietnam Group (EVN) is allowed to self determine to increase electricity prices by less than 10% but minimum time between the 2 price hikes is 6 months, Vnexpress.net reported.
The Prime Minister Nguyen Nguyen Tan Dung has approved Decision No. 69 providing mechanisms to adjust average retail electricity prices, which will come into force from Jan 10, 2014.
Accordingly, the minimum time between the two electricity price adjustments is extended to 6 months, replacing the current requirement of 3 months. It means that electricity prices would be adjusted by maximum of 2 times per year, starting from Jan 10, 2014.When the input parameters such as exchange rates, fuel prices… increase, making base electricity prices to increase by 7-10%, EVN is allowed to increase electricity prices at a corresponding level, after getting approval from the Ministry of Industry and Trade (MoIT).
Incase, prices of input factors increase from 10% or out of specified price frame, EVN will have to compile dossiers of the price plans, report to MoIT and the Ministry of Finance (MoF) for examination. After reviewing, MoIT and MoF will submit the PM for final consideration and decision.
However, the Government does not specify the case of electricity price decrease. The Government does not request at which level or percentage where the basic electricity prices are lower than current selling electricity prices, EVN has to lowere electricity prices. The Decision No.69 only states: " When average electricity price should be adjusted down versus current average electricity prices and within the price frame, EVN is responsible to lower the average electricity price in accordance and reports to the MoIT and MoF”.