According to Decision No. 276/2006/QĐ-TTg dated December 4, 2006 of the Prime Minister, the method of setting electricity price is applied to build the price table in the adjustment stage from January 1, 2007 and July 1, 2008. Since 2010, the retail price will be will be based on market price. Consequently, the power market will enjoy regular development in such phases as power generation, wholesaling, retailing; and natural monopoly phases like transmission or distribution will be regulated to enhance the efficiency of business activities of power sector, and then to lower the prices and diversify the choices for customers.
The method of setting retail price based on market price will be established to match the structure and operation of the market. The price table must clearly distinguish the costs of different phases in accord with the principle of effective operation.
With the help from World Bank, the Electricity Regulatory Authority has deployed the technical supporting project on “The method of crafting retail price table and diagonal compensation mechanism” in order to draft and submit to the juridical authority to release “Regulations on the method and process of crafting and issuing electricity retail price.” These regulations will be introduced in 2008 and come into force in applying electricity retail price for power distributing companies throughout the country in 2009.
Thanh Mai.