Ministry proposes electricity price cut
According to Tuan, the ministry also asked EVN to reduce power prices in 2020 that have a total value of VND12.3trn (USD531m). The first reduction had a value of VND9.3trn was carried out from April 16 to July 16, 2020, for over 27 million customers. The second reduction valued at VND3trn was carried out from October to December 2020 for 25.4 million customers.
Tuan said the reductions had helped disadvantaged households, accommodation facilities and logistics firms.
"We’re building plans for a power price cut in 2021. The plan will be submitted for prime ministerial review," he said. "The ministry will urge EVN to carry out measures to save spending and operational costs so that there will not be a pressure to increase prices in the following year."
Tuan said power prices were calculated based on various processes including power generation, power transmission, distribution, management and ancillary services of the power system. Prices are reviewed and revised annually depending on the market and costs of the previous year.
If the calculated prices increase by 3% or more compared to the current electricity prices then there will be a price rise. If the calculated prices are lower compared to the current prices then EVN must cut prices accordingly.
The Ministry of Industry and Trade is also gathering opinions from other agencies about the Electricity Law to make suitable adjustments.
