As electricity price policy has not reflected the market mechanism, there is still diagonal compensation among groups of electricity users and among regions, the Ministry of Industry and Trade has proposed amending the Electricity Law so as to apply different power prices to each region.As reported by the Electricity Regulatory Authority of Vietnam, the Law has revealed certain shortcomings, especially on electricity price policy. Specifically, electricity price policy is not consistent with the reality; investment in electricity development has not really encouraged all economic sectors to participate.
Electricity price policy has not reflected the market mechanism, there is still diagonal compensation among groups of electricity users and among regions; not guaranteed the recovery of investment capital for electricity units to develop sustainably and encourage economic sectors to invest in power development; not encouraged individuals, businesses and agencies to save power.Therefore, to solve this problem, the Ministry of Industry and Trade has proposed amending towards applying different electricity prices to localities and areas with different socio-economic conditions to ensure the relative benefit balance for power units and electricity users.In addition, the Ministry has also proposed specifying mechanisms on incentives, subsidy and electricity price differences compensation for power plants using renewable energy.The Ministry has also suggested the Prime Minister make decision on policies, mechanisms, conditions and principles of electricity pricing and retail electricity price framework in each period appropriate to each development level of the competitive electricity market.Retail electricity prices in rural areas, mountainous areas and islands connected to the national grid are defined and implemented in accordance with the Electricity retail tariff prescribed by the Minister, for areas which are not or cannot be connected to the national grid, prices are identified and implemented under business guarantee mechanisms.
