Electricity prices will be adjusted every 3 months.

On March 26, 2024, Deputy Prime Minister Le Minh Khai signed and issued Decision No. 05/2024/QD-TTg regulating the mechanism for adjusting the average retail electricity price. This Decision takes effect from May 15, 2024, replacing Decision No. 24/2017/QD-TTg dated June 30, 2017 of the Prime Minister regulating the mechanism for adjusting the average retail electricity price.

Accordingly, the average electricity price is considered for adjustment based on updated electricity generation costs, electricity purchase costs from power plants providing ancillary services according to basic input parameters in the electricity generation stage and other costs not included in the electricity price.

When the average electricity price decreases by 1% or more compared to the current average electricity price, the electricity price is allowed to be adjusted down accordingly.

When the average electricity price increases by 3% or more compared to the current average electricity price, the electricity price is allowed to be adjusted upward.

The minimum time for adjusting the average electricity price is 3 months from the most recent electricity price adjustment.

In case the calculated average electricity price is outside the price range, it can only be considered for adjustment within the price range prescribed by the Prime Minister.

In case the average electricity price needs to be adjusted to be 10% or more higher than the current average electricity price or affects the macro-economic situation, the Ministry of Industry and Trade shall preside over and coordinate with relevant ministries and agencies to inspect, review and report to the Prime Minister for consideration and comments. If necessary, the Ministry of Industry and Trade shall coordinate with relevant ministries and agencies to report to the Price Management Steering Committee before reporting to the Prime Minister.

Adjustment of average electricity price must be done publicly and transparently.

In the Decision, the Prime Minister also assigned the Ministry of Industry and Trade to be responsible for: Guiding EVN to calculate the average electricity price according to regulations, adjusting electricity prices, and presiding over inspection and supervision according to regulations.

The Ministry of Finance shall coordinate with the Ministry of Industry and Trade to implement this Decision as the state price management agency. The General Statistics Office shall be responsible for assessing the impact of electricity price adjustment on the macro-economy.