DRAFT DECISION REGULATING ON STRUCTURE OF ELECTRICITY RETAIL TARIFF

Recently, the Prime Minister has issued the Draft Decision regulating on structure of electricity retail tariff (replacing the Decision No. 28/2014/QĐ-TTg), applying to the EVN Group, Power Corporations under the EVN Group, electricity retailing units buying electricity from Power Corporations under the EVN Group, electricity retailing units at rural, mountainous, border and island areas without national power grid, organizations and individuals using electricity.

Structure of electricity retail tariff is the list of percentage of average electricity retail price to calculate the specific retail price for each group of electricity users. Specifically, there are five groups of electricity users: production group, administrative sector, electric vehicle charging station, business group (including tourist accommodation group and other businesses) and domestic group.

A noticeable point is that electricity retail price for domestic purpose user group includes 5 levels with gradually increasing price, different from the older structure with 6 levels (according to the Decision No. 28/2014/QĐ-TTg), aims at encouraging the saving and efficient electricity using.

In addition, poor households and households with social policies according to the criteria prescribed by the Prime Minister will also be supported with electricity bills with funding sources allocated from the state budget and other legal financial sources.

Details of this Draft Decision can be viewed at:

https://drive.google.com/file/d/1WSBlCJrwC565riOLwXVGMlctXYL9mAd1/view?usp=sharing

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For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

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Attention: This legal update is not an advice and should not be treated as such.