|An electricity transmission station in the Central Highlands province of Lam Dong. An electricity price hike of more than five per cent will need approval by the ministries of Finance and Industry and Trade. — VNA/VNS Photo Ngoc Ha
HA NOI (VNS)— A potential increase in the electricity price by more than 5 per cent will be reviewed by the ministries of Finance, Industry and Trade and submitted to the Prime Minister for approval.
This point was part of a drafted decision by the Prime Minister that was recently published for comments.
Under the decision, Electricity of Viet Nam (EVN) would have to ask for permission from the Ministry of Industry and Trade for any increase between 2 and 5 per cent.
EVN would have the right to reduce electricity prices when the adjustment was more than 5 per cent lower than the current average retail price.
The electricity price would be adjusted under market mechanisms, based on the fluctuations of the basic input costs, according to the draft.
The adjusted electricity retail price must be within the range of the average electricity price regulated by the Government.
If it exceeds the limit, the adjustment must be reported to the Prime Minister. The minimum interval between two adjustments must be three months.
Every year, EVN must report electricity production costs to the two ministries, including generation, transmission and distribution. The figures must then be announced publicly. — VNS