Vietnam increases average electricity retail price
16 March 2023
On 3 February 2023, the Vietnam Prime Minister announced a new price bracket of average electricity retail price in Decision No. 02/2023/QD-TTg (“Decision 02”), which replaces Decision No. 34/2017/QD-TTg dated 25 July 2017 on the same matter. Decision 02 came into force on its issuance.
Accordingly, the price bracket of average electricity retail price (excluding value-added tax) from 3 February 2023 is as follows:
- The minimum average electricity retail price has increased from 1,606.19 VND/kWh to 1.826,22 VND/kWh, an increase of 220.03 VND/kWh; and
- The maximum average electricity retail price has increased from 1,906.42 VND/kWh to 2.444,09 VND/kWh, an increase of 537.67 VND/kWh.
The issuance of Decision 02 is in accordance with the Law on Electricity 2004 (as amended in 2012 and 2018) which provides that electricity selling prices shall be subject to a market mechanism regulated by the State and consistent with both the developmental level of the electricity market and with Decision No. 24/2017/QD-TTg on the mechanism on adjustment of the average retail electricity price. Having consideration of the average retail electricity price under Decision 02 and the electricity retail tariff bracket in specific sectors (e.g. daily consumption and manufacturing) under Decision No. 28/2014/QD-TTg, the Ministry of Industry and Trade shall then decide on the new electricity retail tariff as a legal ground for electricity price calculation and payment.