The draft decision is prepared to ‘correctly and comprehensively calculate all possible costs’ to avoid profit losses for Vietnam Electricity (EVN).
Accordingly, the Ministry of Industry and Trade will include the total amount of other costs such as the unallocated exchange rate differences that are not yet added to the current retail electricity prices. This will become a basis for the calculation of the new prices.
In the draft decision, the Industry and Trade Ministry maintains the proposal that when fluctuations in input costs cause a reduction in the average calculated retail price of electricity of 1 percent and above compared to the applicable one, EVN has to make a corresponding price decrease. However, if the fluctuations create a growth of 3 percent up, EVN can issue a matching price increase.
Nevertheless, in the case that fluctuations result in a rise of 10 percent and above in the average retail price of electricity compared to the current one, which is supposed to have great influences on the macro economy, the Ministry of Industry and Trade must report that to the Prime Minister for further consideration before making a final decision.
The time for each adjustment of electricity prices is reduced from every six to three months.
