Build retail price suitable with performance of power market

Thứ hai, 26/5/2008 | 00:00 GMT+7
On May 15 in Hanoi, Vietnam Electricity Regulatory Authority (ERAV) collaborated with Soluziona Consulting Company (Spain) to organize the Workshop under the theme “Evaluate the method of calculating electricity retail price”, one of the important issues of “The roadmap of adjusting electricity tariff during the period 2007 – 2010” and “The roadmap and conditions to establish and develop power hierarchy in Vietnam” which have been ratified by the Prime Minister.
Currently, the method of setting electricity price applied in Vietnam is complying with the horizontal collaboration monopoly structure from generating phase to transmission phase, distribution phase and retailing phase and is also a centrally accounting model. Therefore, in order to catch up with the Roadmap of adjusting electricity tariff, from 2007 to present, ERAV has cooperated with Consulting Center of World Bank (WB) to construct and complete the methodology of setting electricity tariff based on brand new concepts. As in the Decision No. 276/2006/QĐ-TTg dated December 4th 2006, the electricity retail price will be close to market price since 2010 as estimated.
Accordingly, the new methodology must be suitable with the structure and the performance of the power market. As in Decision No. 26/2006/QĐ – TTg dated January 26th 2006, the power market will be develop from generating to wholesaling and retailing, the monopolistic phases like transmission and distribution will be regulated to enhance the effectiveness of business transactions in power sector, lessen the pressure of higher price and diversify the choices for customers. The electricity tariff, as a result, must be transparent in all phases and the cost in each phase must obey the rules of effective operation.
Before submitting the Regulations on calculating electricity retail price to the Ministry of Industry and Trade and then the Prime Minister, ERAV has cooperated with the Consulting Center of World Bank to carry out projects, namely “Building the methodology of drafting electricity retail tariff for distribution companies” and “Building detailed mechanism for diagonal compensation in power related activities.” The Regulations will be inacted in 2008 and be put into practice in 2010.
This Workshop is one of the workshop chain in the project “Calculating electricity tariff for power plants” which was started in February 2008 and is expected to be finished in April 2009. It is consulted that the method of setting retail price should be based on the revenue of power plants, which will encourage these companies to improve their performance by setting objectives for their operation. The constructive ideas will be collected by the Consulting Center to complete the report “Evaluate the method of calculating the electricity retail price” and to establish the database for the calculation of the annual revenue of power plants in line with the new mechanism applied in 2010.
Theo: Minh Duc