Proposing to adjust electricity prices by quarter, using less discounts

The Ministry of Industry and Trade has just issued a written request to relevant ministries and agencies on the Draft National Power Development Planning Project for the period 2021-2030, with a vision to 2045 (Power Planning VIII).

In the draft of the Scheme, Chapter XV has evaluated the socio-economic efficiency of the National Electricity development program, in which analysis of the system electricity price of some countries in the region and Vietnam.

According to the Ministry of Industry and Trade, the electricity retail tariff in the 2007-2020 period has many changes. The electricity tariff from 2007 up to now is divided by sectors, voltage level, peak hour, and electricity price for daily life divided by ladder.

The Ministry of Industry and Trade proposes to adjust electricity prices quarterly, using less discounts – Photo: M. Chien

Over the past 15 years, with 13 changes, updating and completing the tariff, the current electricity price has been shortened, transparent and clear. In particular, the retail electricity tariff for living has been reduced from 7 steps to 6 steps in 2014, making the tariff simpler and ensuring energy saving goals in living.

According to the Ministry of Industry and Trade, according to the principle of price adjustment mechanism, annually, the average base price of electricity will be calculated based on the input factors forming the price of the power generation and transmission stages. , operation – management of the industry and ancillary services, distribution and retail business of electricity for the year in which the price is applied, the difference in the total cost of electricity production and business adjusted in the previous year due to fluctuations in parameters Actual input and generation share are different from the previous year.

When there is a decision of the government on the mechanism for implementing the electricity selling price according to the market mechanism, there will be a mechanism to automatically adjust the electricity price in the year, at the same time the Ministry of Industry and Trade will prescribe the mechanism to adjust the difference. fees and annual revenue.

In the draft Electricity Planning Project XIII, the Ministry of Industry and Trade has proposed directions for the construction of electricity price list in the planning stage. Through analysis of current electricity tariffs of Vietnam and some countries in the region, the Ministry of Industry and Trade believes that the electricity tariffs of some of the above countries have more progress than the current electricity tariffs of Vietnam (electricity prices). According to 2 components of capacity and electricity, electricity prices are adjusted quarterly when fuel costs change, with a discount coefficient when using less electricity, not cross-compensation between large groups of customers, only subsidies for target customers. elderly, unemployed, single, separate market support service costs, system operating costs and market governance) …

Therefore, in the coming period, the Ministry of Industry and Trade proposes to study the completion of Vietnam’s electricity retail tariff to ensure the requirements: Simple, easy to understand, transparent, clear, easy to implement; suitable to the electricity industry, electricity market and household socio-economic situation in each period. Separating social policies from electricity prices (as set out in Decision 28/2014 / QD-TTg), according to which, poor households, social policy households are supported with electricity bills for living purposes, monthly support equivalent to 30 kWh of electricity used at the current retail electricity price level 1. Assuming that the level of support is still low, it can be considered to increase, for example, 50 kWh / month.

In addition, the electricity retail tariff needs to ensure the principle: To offset costs and profit at a reasonable level for the power industry and investors to constantly develop power sources and grids to meet daily electricity demand. increasing; Ensuring fairness for customers; In accordance with the law of scarcity of energy resources, according to which the increasing demand for electricity, the mobilization of energy resources with conditions for exploitation becomes more difficult for electricity generation and thus the cost of the sources. New electricity is getting higher and higher.

The Ministry of Industry and Trade believes that in the current context, the ladder electricity tariff is the most reasonable, meeting the above principles and suitable to the characteristics of electricity production and trading, the electricity market and consumers. use electricity for daily life.

Regarding the criteria of the ladder electricity retail tariff, the Ministry of Industry and Trade thinks that it is necessary to have the effect of encouraging economical use of electricity; not too complicated, not too many steps; In accordance with the relevant State policy on electricity use, it is possible to combine support for policy beneficiaries, special subjects such as the elderly …

Since then, the Ministry of Industry and Trade proposed to study the building of ladder price 2 components capacity and electricity; consider monthly fixed fee collection; considering quarterly electricity price adjustments when fuel costs change; consider the discount factor if less electricity is used …

According to the Ministry of Industry and Trade, electricity prices (and electricity tariffs) are divided into price components to ensure transparency in the business accounting of the electricity industry because electricity prices are separated for each stage of power generation and transmission, electricity distribution and retail and operating industry management.

It is necessary to have a flexible and timely price adjustment mechanism with fluctuations of input factors forming electricity prices and must meet the following purposes: The built electricity tariff must reflect the reality according to the market. field for each stage of electricity generation, transmission, distribution and retail, gradually removing subsidies in electricity prices; ensure efficient business operations of electricity-operating units in stages from electricity production to transmission and retail distribution.

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