SUMMARY OF DECISION NO. 2503/QD-BCT APPROVING THE ELECTRICITY PRICE FRAMEWORK

The Minister of the Ministry of Industry and Trade has recently issued Decision No. 2503/QD-BCT dated September 28, 2023, regarding the approval of the electricity price framework for the year 2023. According to this decision, the electricity price framework for the year 2023 will be applicable to negotiations for the purchase and sale of electricity contracts by power plants as stipulated in point a, clause 2 of Article 1 of Circular No. 57/2014/TT-BCT dated December 19, 2014, by the Minister of the Ministry of Industry and Trade, which outlines the methods, procedures for establishing, and promulgating electricity price frameworks. The key points of the approved electricity price framework.

05/10/2023

SUMMARY OF DECISION NO. 2503/QD-BCT APPROVING THE ELECTRICITY PRICE FRAMEWORK

Electricity Price Framework for Coal-fired Power Plants

The maximum price applicable to coal-fired power plants is 1,559.70 Vietnamese Dong per kWh (excluding value-added tax).

The parameters used in calculating the maximum price of the electricity price framework for coal-fired power plants in 2023 are as follows: Installed capacity is 2x600 MW; Heat consumption rate at 85% load is 2,411.39 kcal/kWh; High Heating Value (HHV) of coal is 5,280 kcal/kg.

The coal price (excluding value-added tax and transportation costs) is 1,808,000 Vietnamese Dong per ton. The exchange rate is 24,885 Vietnamese Dong per USD.

Electricity Price Framework for Hydropower Plants

The electricity price framework for hydropower plants ranges from 0 to 1,110 Vietnamese Dong per kWh (excluding natural resource tax, forest environmental service fees, water resource exploitation rights fees, and value-added tax).

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For more information, please contact:

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

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