>> Vietnam moves towards competitive energy market
Prime Minister Nguyen Tan Dung has issued a decision to allow an adjustment in power price at least once every quarter beginning June 1.
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| Vietnam to set up a power price stabilisation fund |
Under the new regulation, the country’s average power price should be calculated based on four major costs: generation, transmission, distribution, management and support services.
If the price of fuel, for example, should fall by 5% or more, the Electricity of Vietnam Group (EVN), the country’s sole power distributor, would lower the its prices.
The group must get approval from the Government before any price hikes.
Within 15 days from the submission, if EVN does not receive any official Government decision, it would be allowed to increase power prices by 5%.
The PM assigned the Ministry of Finance, together with the Ministry of Industry and Trade, to set up a power price stabilisation fund. Capital for the fund will come, in part, from electricity revenues.
These two ministries will work together to supervise EVN’s power price hikes.
Vietnam is speeding up technical preparations to foster a competitive power generation market beginning July 1. At present, EVN has the sole right to buy electricity from all domestic power producers for nationwide distribution, in addition to making purchases from neighbours such as China, Laos and Cambodia.