The Ministry of Industry and Trade (MoIT) of Vietnam has disclosed draft of management mechanism and adjustment of electricity retail prices.
When the input factors make the electricity prices to increase 2-5% and in the price frame, Electricity of Vietnam (EVN) is allowed to increase electricity prices in the corresponding level after getting approval from MoIT.
When input parameters make electricity to increase by more than 5% or the average retail electricity price after adjustment surpasses the price frame, EVN has to report to MoIT and the Ministry of Finance (MoF) to evaluate. EVN is allowed to adjust electricity retail prices by 5% if Prime Minister has not answered within 15 working days since the submission of MoIT.
When inputs make the electricity prices by 5% or more lower than the current electricity selling prices, EVN is allowed to cut electricity selling prices in a correspondent level and EVN has to submit MoIT and MoF for evaluation.
In 2012, electricity prices were adjusted 2 times and current average electricity retail selling prices is VND1,437/ kWh (US$6.87c/kWh) .