Vietnam: Beginning publicity and transparency in electricity prices

Vietnam: Beginning publicity and transparency in electricity prices

Implementing periodic targets assigned by Ministry of Industry and Trade
(MOIT) in the Direction No 11 dated at 22/4/2014 on strengthening publicity
and transparency in electricity and gasoline businesses, the Electricity
Regulatory Agency of Vietnam (ERAV) has just haven an official document to
inform basic input parameters of the electricity prices in 2016, and avoided
cost tariffs and electricity generation price frameworks in 2017.

The directions are include:

1. In November of 2016, the peak demand and total available capacity
(excluding capacity imported from China) of Vietnam power system
respectively were 26,988 MW and 30,853 MW, and the average price of
electricity that EVN purchased was 1237.02 VND/kWh.

2. According to the Decision No 5106, the avoided cost tariffs in 2017
applied for the grid connected small hydropower plants meeting the
regulations of Circulars No 32/2014/TT-BCT and 06/2016/TT-BCT on the orders
of building, applying avoided costs and issuing sample power purchase
agreement (PPA) for the small power plants, take effect from 01/01/2017 to
31/12/2017 with changing by the seasons as for dry season:

In Northern Vietnam: electricity price in peak hours - 608 dong/kWh and in
off-peak hours - 613 dong/kWh

In Central Vietnam: electricity price in peak hours - 606 dong/kWh and in
off-peak hours - 611 dong/kWh

In Southern Vietnam: electricity price in peak hours - 637 dong/kWh and in
off-peak hours - 642 dong/kWh

And for rainy season:

In Northern Vietnam: electricity price in peak hours - 608 dong/kWh and in
off-peak hours - 623 dong/kWh

In Central Vietnam: electricity price in peak hours - 605 dong/kWh and in
off-peak hours - 620 dong/kWh

In Southern Vietnam: electricity price in peak hours - 636 dong/kWh and in
off-peak hours - 652 dong/kWh

The capacity price for the three regions is 2242 dong/kW

3. In accordance with Decision No 5107, the electricity generation price
frameworks in 2017 are the ceiling level prices of electricity from
coal-fired thermal power plants (TPPs) as 1568.70 dong/kWh and from
hydropower plants as 1070 dong/kWh.

The electricity generation price frameworks in 2017 are applied for
negotiation of electricity prices in PPA. Based on The electricity
generation price frameworks of coal-fired TPPs, EVN and generation units
negotiate actual electricity purchase prices in accordance with the current
laws on the methods of electricity generation price and management of
investment and construction costs issued by the competent agencies.

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Link to Original Article:
http://nangluongvietnam.vn/news/en/electricity/beginning-publicity-and-trans
parency-in-electricity-prices.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com