Will customers be able to negotiate electricity prices by themselves?

VCN - According to a plan being calculated by the Ministry of Industry and Trade to implement a competitive electricity retail market, after 2025, people participating in the electricity retail market can choose their own electricity sellers and negotiate the retail price of electricity.
will customers be able to negotiate electricity prices by themselves Common electricity price is nearly VND 3,000/kWh, who benefits and who suffers?
will customers be able to negotiate electricity prices by themselves Option one electricity price: Calculating carefully to harmonize benefits
will customers be able to negotiate electricity prices by themselves Ministry of Finance’s comments on electricity price reduction for three months
will customers be able to negotiate electricity prices by themselves
It will take a long time for the competitive retail electricity market to come into operation smoothly. Photo: Nguyen Thanh

Customers can choose a unit to sell electricity

In early June, the Prime Minister sent a document to the Ministry of Industry and Trade and State Capital Management Committee at enterprises on the policy of building and developing a competitive electricity retail market in Vietnam.

This document clearly states the Prime Minister agrees on the policy of developing a competitive electricity retail market and studying and adjusting regulations on electricity retail prices to suit the development of the electricity market. This is one of the latest directives of the Prime Minister regarding the competitive electricity retail market, as a premise for pilot application in 2021.

Previously, in the statement of approving the policy of building and developing the competitive electricity retail market in Vietnam and sent to the Prime Minister, the Ministry of Industry and Trade built step by step for the electricity retail market.

Phase 1 (2020 - 2021): The stage of implementing necessary preparations for the operation of the competitive electricity retail market in the second phase (2022 - 2023).

Phase 2 (2022 - 2023): Large electricity users participate in buying electricity from the spot market. Specifically, large electricity users can buy electricity on the spot electricity market, with priority given to piloting direct bilateral contracts between large customers and renewable energy sources (such as wind power and solar power).

Electricity users who have not participated in the electricity retail market: Continue to buy electricity from power corporations according to the retail price tariff set by the competent authority.

Phase 3 (2024 - 2025): Large electricity consumers choose an electricity retailer. For customers participating in the electricity market, to expand the group of large electricity users eligible to participate in buying electricity from the on the spot electricity market; allowing a number of large electricity users in some areas to choose and change electricity retailers.

The remaining electricity customers: Continue to buy electricity from power Corporations according to the retail price tariff set by the competent authority.

Phase 4 (after 2025): Developing and expanding the electricity retail market. For groups of customers participating in the electricity market, to expand large customers to participate in buying electricity onthe on the spot electricity market; expand the scope of the electricity retail market, allowing electricity users nationwide to choose and change electricity retail units (according to a roadmap suitable to the scale of electricity consumption of customers).

Customers who do not participate in the market: Buy electricity from the default electricity retailers (power corporations) according to the tariff set by the competent authority.

After 2025, people who want to participate in the electricity retail market can choose a power retailer.

Extensive reform of retail price mechanism

The Ministry of Industry and Trade stated that according to current legal regulations, the retail price of electricity is regulated by the State. According to the provisions of the law amending and supplementing the Electricity Law, the average retail price of electricity, the mechanism of price adjustment and structure of the electricity retail price schedule shall be appropriately regulated by the Prime Minister in accordance with the development level of the electricity market.

According to the provisions of Decision 28/2014/QD-TTg regulating the structure of the electricity retail tariff, the electricity retail tariff is uniformly applied nationwide.

When implementing acompetitive retail electricity market, for customers participating in the retail market, it is necessary to amend Decision No. 28/2014/QD-TTg so the retail price of electricity will be due to the electricity retailer and agreement between electricity user customers under contracts. Therefore, the electricity retail price is determined based on unified negotiation between the two electricity buyers and sellers.

For customers who do not choose to participate in the electricity retail market, they will continue to follow the retail price tariff set by the State.

The electricity retail market will be expanded step by step. In the first stage, a part of electricity users directly participate in the market (buying electricity at competitive market prices, not applying the price subsidy mechanisms); the rest of customers buy electricity at the tariff set by the State.

will customers be able to negotiate electricity prices by themselves Improving the electricity retailing price list: Who benefits, who suffers?

When eligible, it will expand the scope so that 100% of customers can participate in the electricity retail market (then the electricity price will be completely market-based, without subsidising the electricity price and support mechanisms and policies. State subsidies to poor and low-income households should be clearly separated, independent from the retail electricity price).

By UyenNhu/ HuuTuc

Related News

Coconut is expected to become a billion-dollar export item

Coconut is expected to become a billion-dollar export item

VCN - Talking to the press at the ceremony to launch the first train carrying fresh coconuts to China, Mr. Luu Van Phi, Director of the Department of Industry and Trade of Tien Giang province, said that Vietnam's agricultural export potential, especially fresh coconuts, is expanding with the appearance of international railway transportation from Song Than station.
Plastic exporters interested in converting to recycling technology

Plastic exporters interested in converting to recycling technology

VCN - The Vietnamese plastics industry is facing major challenges in terms of plastic waste and recycling needs. Secretary General of the Vietnam Plastics Association Huynh Thi My (pictured) shared important information about the transformation in production of plastics enterprises to meet increasing export demands.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".

Latest News

Prime Minister to attend 8th Greater Mekong Subregion Summit

Prime Minister to attend 8th Greater Mekong Subregion Summit

Prime Minister Pham Minh Chinh will lead a high-level delegation to the 8th Greater Mekong Subregion (GMS) Summit in Kunming, China’s Yunnan province, from November 5 to 8, at the invitation of Chinese Premier Li Qiang.
PM's visit a significant milestone in Vietnam – Qatar relations: Vietnamese FM

PM's visit a significant milestone in Vietnam – Qatar relations: Vietnamese FM

Deputy Prime Minister and Foreign Minister Bui Thanh Son has granted and interview to Qatar's Asian Telegraph Newspaper on the outcomes of Prime Minister Pham Minh Chinh's visit to the Middle Eastern country from October 30 to November 1, as well as the cooperation prospects between the two countries.
Cuban top legislator concludes Vietnam visit

Cuban top legislator concludes Vietnam visit

Politburo member of the Communist Party of Cuba and President of the National Assembly of People’s Power Esteban Lazo Hernandez and the Cuban delegation successfully concluded their visit to Vietnam on November 3.
State President welcomes top legislator of Cuba

State President welcomes top legislator of Cuba

State President Luong Cuong met with Politburo member, President of the National Assembly of People’s Power, and President of the Council of State of Cuba Esteban Lazo Hernandez in Hanoi on November 2.

More News

Remove "bottlenecks" for economic breakthrough

Remove "bottlenecks" for economic breakthrough

VCN - In recent articles and speeches, General Secretary and President To Lam has repeatedly mentioned that the country is facing a new era of national growth. General Secretary and President To Lam also requested that the “bottlenecks” of the economy must be quickly removed, creating innovation and breakthroughs to complete the set tasks.
Int’l organisations, experts remain optimistic about Vietnam's economic outlook

Int’l organisations, experts remain optimistic about Vietnam's economic outlook

International organisations and experts have made positive comments on the Vietnamese economy, affirming their optimism about Vietnam's economic outlook.
Party chief clarifies major issues on new era of nation

Party chief clarifies major issues on new era of nation

Prof. Dr. To Lam, General Secretary of the Communist Party of Vietnam (CPV)’s Central Committee on October 31 had a discussion with participants of a training course for officials planned for the 14th Party Central Committee, focusing on a number of issues on a new era – the era of the nation’s rise.
Vietnam, others call on US to immediately end embargo against Cuba

Vietnam, others call on US to immediately end embargo against Cuba

Vietnam calls on the US to immediately end its embargo against and remove Cuba from the list of state sponsors of terrorism, moving towards normalising relations between the two countries based on equality, mutual respect, and respect for each other's national sovereignty and political independence, stated Ambassador Dang Hoang Giang, Permanent Representative of Vietnam to the UN.
Vietnam

Vietnam's economy is recovering well

VCN - According to Dr. Nguyen Quoc Viet, Deputy Director of the Vietnam Institute for Economic and Policy Research (VEPR), by the end of the third quarter of this year, Vietnam's economy had recovered relatively well amid optimism about the overall growth of the world economy in late 2024 and 2025.
“Carbon footprint” reduction needed for sustainable tourism development: insiders

“Carbon footprint” reduction needed for sustainable tourism development: insiders

Vietnam's tourism industry is making efforts to reduce its “carbon footprint” in pursuit of sustainability, focusing on developing “green tours”, upgrading transport infrastructure, and developing renewable energy-used vehicles, said insiders.
Concerted efforts underway to prevent IUU fishing

Concerted efforts underway to prevent IUU fishing

Vietnam is making thorough preparations to welcome the European Commission (EC)'s inspection delegation with the hope of having its “yellow card” on illegal, unreported and unregulated (IUU) fishing against the fisheries sector removed, thus boosting seafood exports to the EU market.
Vietnam needs to diversify supply chains for sustainable growth: economists

Vietnam needs to diversify supply chains for sustainable growth: economists

The diversification of global supply chains is creating significant opportunities for Vietnam to engage more deeply in international production networks. However, along with market expansion prospects, there are challenges posed by trade tensions, the reality of climate change accompanied by natural disasters, and the requirements for carbon emissions reduction, according to experts.
PM arrives in Abu Dhabi, beginning official visit to UAE

PM arrives in Abu Dhabi, beginning official visit to UAE

Prime Minister Pham Minh Chinh, his spouse and a high-ranking delegation of Vietnam arrived at Zayed International Airport in Abu Dhabi at 11 am on October 27 (local time), starting their official visit to the United Arab Emirates (UAE) at the invitation of President Mohamed bin Zayed Al Nahyan.
Read More

Your care

Latest Most read
Prime Minister to attend 8th Greater Mekong Subregion Summit

Prime Minister to attend 8th Greater Mekong Subregion Summit

Prime Minister Pham Minh Chinh will lead a high-level delegation to the 8th Greater Mekong Subregion (GMS) Summit in Kunming, China’s Yunnan province, from November 5 to 8, at the invitation of Chinese Premier Li Qiang.
PM's visit a significant milestone in Vietnam – Qatar relations: Vietnamese FM

PM's visit a significant milestone in Vietnam – Qatar relations: Vietnamese FM

Deputy Prime Minister and Foreign Minister Bui Thanh Son has granted and interview to Qatar's Asian Telegraph Newspaper on the outcomes of Prime Minister Pham Minh Chinh's visit to the Middle Eastern country from October 30 to November 1, as well as the cooperation prospects between the two countries.
Cuban top legislator concludes Vietnam visit

Cuban top legislator concludes Vietnam visit

Politburo member of the Communist Party of Cuba and President of the National Assembly of People’s Power Esteban Lazo Hernandez and the Cuban delegation successfully concluded their visit to Vietnam on November 3.
State President welcomes top legislator of Cuba

State President welcomes top legislator of Cuba

State President Luong Cuong met with Politburo member, President of the National Assembly of People’s Power, and President of the Council of State of Cuba Esteban Lazo Hernandez in Hanoi on November 2.
Remove "bottlenecks" for economic breakthrough

Remove "bottlenecks" for economic breakthrough

General Secretary and President To Lam requested that the “bottlenecks” of the economy must be quickly removed, creating innovation and breakthroughs to complete the set tasks.
Mobile Version