Decision No. 28/2014/QD-TTg on the structure of retail electricity price tariffs

Pursuant to …;

Regulations on the Structure of Retail Electricity Tariff

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Electricity Law dated December 3, 2004; and the Law Amending and Supplementing Certain Provisions of the Electricity Law dated November 20, 2012;

Based on Decree No. 137/2013/NĐ-CP dated October 21, 2013, issued by the Government, detailing the implementation of certain provisions of the Electricity Law and the Law Amending and Supplementing Certain Provisions of the Electricity Law;

At the proposal of the Minister of Industry and Trade,

The Prime Minister issues this Decision to regulate the structure of retail electricity tariff.

Article 1. Scope of Regulation and Applicability

1. This Decision stipulates the structure of the retail electricity price schedule.

2. This Decision applies to the Vietnam Electricity Corporation; subsidiaries of the Vietnam Electricity Corporation; retail electricity units purchasing electricity from subsidiaries of the Vietnam Electricity Corporation; rural, mountainous, border, and island area retail electricity units that have not yet been connected to the national power grid; organizations and individuals using electricity.

Article 2. Interpretation of Terms

In this Decision, the following terms are understood as follows:

The structure of the retail electricity price schedule is a list of percentages (%) of the average retail electricity price used to calculate specific retail electricity prices for each group of electricity users.

Article 3. Principles for establishing the structure of the retail electricity price schedule

1. The retail electricity price is detailed for each group of electricity consumers, including production, business, administrative, and residential purposes.

2. Retail electricity prices according to voltage levels (from 110kV upwards, from 22kV to below 110kV, from 6kV to below 22kV, and below 6kV) apply to production, business, administrative, and public service customer groups.

3. The retail electricity price according to time-of-use for production and business purposes at various voltage levels shall apply to qualified electricity consumers.

4. Retail electricity prices for residential customers consist of six tiers with increasing rates to encourage efficient and economical electricity usage.

5. Prepaid meter-based retail electricity prices for residential use shall be applied when technical conditions permit for temporary and short-term residential electricity users.

6. Households classified as poor according to criteria set by the Prime Minister shall be subsidized for electricity costs for residential purposes, with monthly subsidies equivalent to the cost of 30 kWh at the current first-tier residential retail electricity rate.

7. Social policy households classified according to criteria set by the Prime Minister (excluding those eligible for electricity subsidies under Clause 6 of Article 3 of this Decision) and whose monthly electricity consumption for residential purposes does not exceed 50 kWh shall be subsidized for electricity costs equivalent to the cost of 30 kWh at the current first-tier residential retail electricity rate.

8. Funding for electricity subsidies for poor and social policy households shall be sourced from the State budget.

9. National grid-connected electricity pricing shall be applied to customers in rural, mountainous, border, and island areas that have not yet been connected to the national power grid.

Cost differences for electricity companies due to uniform national electricity pricing being lower than the cost of producing and trading electricity shall be included in the national electricity price for regions where electricity is sold by the Vietnam Electricity Corporation; for regions where electricity is not sold by the Vietnam Electricity Corporation, cost differences shall be implemented in accordance with regulations set by the Prime Minister.

Article 4. Structure of the retail electricity price schedule

1. The percentage (%) of retail electricity prices for various customer groups relative to the adjusted average retail electricity price is detailed in the Appendix attached to this Decision.

2. In cases where electricity consumption patterns change, based on the adjusted average retail electricity price within the authority's jurisdiction, retail electricity prices for various customer groups may be adjusted within a range of ± 2% compared to the percentages specified in the Appendix attached to this Decision.

3. Retail electricity prices for various customer groups shall be determined based on the adjusted average retail electricity price within the authority's jurisdiction and the structure of the retail electricity price schedule as stipulated in Clauses 1 and 2 of this Article.

State-owned enterprises that have been assigned by the Ministry of Agriculture and Rural Development to conduct offshore wind power project surveys before the effective date of this Circular shall continue to implement according to the assigned documents; any new matters arising after the effective date of this Circular shall be implemented in accordance with the provisions of this Circular.

1. The Ministry of Industry and Trade shall be responsible for:

a) Regulations and guidance on retail electricity prices for various customer groups; electricity prices for retail electricity units;

b) Study and develop mechanisms for two-part electricity pricing including capacity charges and energy charges for various customer groups when technical conditions permit;

- Mechanisms for incentive electricity pricing to pilot for customers participating in demand management programs.

2. The Ministry of Labor, Invalids, and Social Affairs is responsible for leading and coordinating with the Ministry of Finance, the Ministry of Industry and Trade, and relevant agencies to establish criteria for social policy households entitled to support as stipulated in Clause 7 of Article 3 of this Decision, to submit to the Prime Minister for consideration and decision-making no later than three months from the date this Decision takes effect.

a) Lead and coordinate with the Ministry of Industry and Trade, the Ministry of Labor, Invalids, and Social Affairs to calculate annual subsidies for poor and social policy households as stipulated in Clauses 6, 7, and 8 of Article 3 of this Decision, to submit to the Prime Minister for consideration and decision-making;

3. The Ministry of Finance shall be responsible:

b) Lead and coordinate with the Ministry of Labor, Invalids, and Social Affairs, the Ministry of Industry and Trade to guide implementation, monitor, and supervise electricity subsidies for poor and social policy households.

4. Provincial People's Committees and municipal people's committees directly under the central government are responsible for organizing the provision of electricity subsidies for poor and social policy households.

1. This Decision takes effect from June 1, 2014. Decision No. 268/QĐ-TTg dated February 23, 2011 of the Prime Minister regarding the Retail Electricity Price Schedule ceases to be effective from the date this Decision takes effect.

Article 6. Effectiveness

2. Ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairpersons of provincial and municipal people's committees directly under the central government, the Vietnam Electricity Corporation, and related units are responsible for implementing this Decision./.

STRUCTURE OF THE RETAIL ELECTRICITY PRICE SCHEDULE

Appendix

(Annexed to Decision No. 28/2014/QĐ-TTg dated April 7, 2014 of the Prime Minister)
Customer Group