Any decisions regarding adjustments will depend on the outcomes of this review, with the possibility of not only increases but also potential decreases in prices.
During the regular press conference and the commemoration of the 99th anniversary of Vietnam Revolutionary Press Day organized by the MoIT on the afternoon of June 19, a representative from the Electricity Regulatory Authority of Vietnam disclosed that the MoIT has established a task force currently collaborating with the Vietnam Electricity Group (EVN) and other relevant parties to review and assess the input factors influencing current electricity prices. Based on this evaluation, they will determine whether electricity prices should be adjusted upwards or downwards in the near future.
"Currently, the MoIT has sent a team to examine EVN's electricity cost structure for 2023, which will serve as a basis for considering adjustments to electricity prices in 2024," stated Mr. Nguyen The Huu, Deputy Director of the Electricity Regulatory Authority of Vietnam.
However, Huu mentioned that, as of now, the review process has not produced any outcomes. The decision on the extent of the electricity price adjustment and its timing depends on the results of this assessment.
Deputy Minister of the MoIT Nguyen Sinh Nhat Tan provided additional information, stating that previously, the main policy framework for reviewing electricity price adjustments was Decision No.24/2017 by the Prime Minister. However, more recently, the Prime Minister has issued Decision No.05, which is now in effect.
Referring to the provisions of Decision No.05, Deputy Minister Nguyen Sinh Nhat Tan emphasized, "Nowadays, we should not only consider electricity prices increasing, but also the possibility of decreases."
According to the Deputy Minister of Industry and Trade, the new decision also stipulates that if there are sufficient grounds and factors to reduce electricity prices when input costs decrease by 1 percent, prices must be "immediately lowered." Regarding price increases, under Decision No.05, electricity prices can only be raised when input costs cause a corresponding increase of 3 percent, 5 percent, or higher. Such adjustments will be considered and approved by the relevant authorities, with a review cycle set every three months.
"When input costs and electricity production costs decrease, we will monitor and require EVN to reduce prices immediately. Conversely, if prices need to be increased, a report must be submitted for review, whether it falls under the authority of EVN, the MoIT, or the Prime Minister. Additionally, the socio-economic impacts of such an increase must be assessed," explained Deputy Minister Nguyen Sinh Nhat Tan.
