THE PRIME MINISTER
Decision No. 69/2013/QD-TTg dated November 19, 2013 of the Prime Minister on the mechanism for adjustment of the average electricity retail price levels
Pursuant to the December 25, 2001 Law on Organization of Government;
Pursuant to the December 03, 2004 Electricity Law; the November 20, 2012 Law amending and supplementing a number of articles of the Electricity Law;
Pursuant to the June 20, 2012 Price Law;
Pursuant to the Government’s Decree No. 137/2013/ND-CP dated October 21, 2013, detailing implementation of a number of Articles of the Electricity Law, and the Law amending and supplementing a number of articles of the Electricity Law;
Pursuant to the Government’s Decree No. 177/2013/ND-CP dated November 14, 2013, detailing and guiding implementation of a number of Articles of the Price Law;
At the proposal of the Minister of Industry and Trade;
The Prime Minister promulgates Decision on the mechanism for adjustment of the average electricity retail price levels,
Article 1. Scope of regulation and subjects of application
1. This Decision stipulates the mechanism for adjustment of the average electricity retail price levels.
2. This Decision applies to organizations and individuals who participate in activities of electricity and use electricity.
Article 2. Interpretation of terms
In this Decision, the below terms are construed as follows:
1. An average electricity retail price level means a specific price level within the price bracket of the average electricity retail price levels defined by the Prime Minister (hereinafter abbreviated as average electricity selling price).
2. A basic average electricity selling price means a planned average electricity selling price which is formulated annually on the basis of the cost for electricity production and business and the rational profit of four stages including: Power generation, power transmission, electricity distribution and retail, administration and management, and auxiliary services of electrical system. The basic average electricity selling price is used for reference in calculation for adjustment of the average electricity selling price according to the basic input parameters in year.
3. A competitive generation market price means a price defined on competitive generation market according to the principles and regulations on controlling the competitive generation market promulgated by competent agencies.
4. A price bracket of average electricity retail price level means a distance between the minimum price level and the maximum price level of average electricity retail price level (hereinafter abbreviated as price bracket).
5. Basic input parameters mean the elements directly influencing on the cost of electricity generation that the electricity units are unable to control, including: price of material, foreign exchange, structure of generation output and prices of competitive generation market.
Article 3. Principle for the adjustment of average electricity selling price
1. In fiscal year, average electricity selling price is considered to adjust when basic input parameters change in comparison to the parameters which have been used to define the basic average electricity selling price. Other input parameters are considered to adjust average electricity selling price only after having settlement statements, audit reports as prescribed at Clause 4 Article 4 of this Decision.
2. Average electricity selling price is adjusted within the price bracket specified by the Prime Minister and only adjusted to increase at level of 7% or more in comparison with the current average electricity price. Duration for adjusting average electricity selling prices between the two consecutive times is at least 06 months.
3. The adjustment of average electricity selling prices must be implemented publicly and transparently. As necessary, the State uses the Fund of electricity price stability and other measures in accordance with regulations in order to stabilize electricity selling price aiming to minimize disadvantage impacts on the macro economy stability and social security.
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