New electricity price system proposed
MOIT, with consulting by BK Contech, has made proposals on restructuring the prices of electricity for daily household use. It has designed one-, three-, four- and five-level electricity prices.
According to the consultancy firm, the one-level price (single price) solution is not usable if considering the goals of the pricing policy: social policy, reflection of production costs, and effective electricity use.
The consultant preferred a 5-level solution.
Level 1: to be applied for the first 0-100 kwh used. The new price for this level would be VND1,753/kwh (current prices are VND1,678-1,734).
Level 2: to be applied from the 101st to the 200th kwh and a proposed price of VND2,014/kwh (current prices are VND2.014/kwh).
Level 3: to be applied from the 201st to the 400th kwh with the proposed price of VND2,424/kwh (current prices are VND2,536-2,834/kwh).
Level 4: to be applied from the 401st to the 700th kwh with the price of VND2,871/kwh (current price is VND2,927/kwh).
Level 5: to be applied to the 701st and higher kwh used with the price of VND3,076/kwh (current price is VND2,927/kwh).
With the option, the current electricity price for the first 100 kwh would be unchanged in order to ensure price stability for poor households which have a low level of electricity use (which account for 33.48 percent of households).
The low revenue from the households would be offset by revenue from households using 401 to over 700 kwh of electricity.
The current electricity prices would remain unchanged for the 101-200kwh and 201-300kwh levels.
The electricity prices for 401-700kwh and more than 700kwh are designed to offset the low revenue from lower levels.
The advantage of the five levels, according to the consultant, is that it is simple and the changes in electricity bills would be smaller.
The disadvantage is that the bills for households using less 270kwh a month would increase by 2.32 percent on average.
MOIT, considering the opinions of the consultant, has suggested two options, 5-level and 4-level electricity prices.
Option 1: it agrees on the consultant’s suggestion on designing a 5-level instead of 6-level price scheme, but with some changes:
Level 1: first 100 kwh
Level 2: 101st-200th kwh
Level 3: 201st-400th kwh
Level 4: 401st-700th kwh
Level 5: 701st and more
Level 1: first 100 kwh
Level 2: 101st-300th kwh
Level 3: 301st-700th kwhLevel 4: 701st and more.