The Ministry of Industry and Trade has just issued a document requesting the Ministry of Justice to appraise the Draft Decision of the Prime Minister regulating the roadmap, principles of operation, structure of the electricity industry and conditions for forming and developing competitive electricity market levels in Vietnam.
Competitive electricity market at 3 levels
According to the draft, the Ministry of Industry and Trade proposes a roadmap for the formation and development of competitive electricity market levels in Vietnam through 3 levels.
Level 1, the competitive power generation market has been officially operational since 2012 and moved to the competitive wholesale market since 2019.
Level 2, the competitive wholesale market has been officially operated since 2019 and continues to be completed to expand the implementation of electricity purchase and sale transactions between power generation units, wholesale units, retail units of electricity and large electricity customers.
Level 3, the competitive retail electricity market will be operated from 2027, in parallel with competitive wholesale activities, to establish a competitive environment in retail electricity transactions between electricity customers and electricity retail units. The competitive retail electricity market will continue to expand its scope of competition in accordance with the prescribed conditions.
People benefit, have more choices
For the competitive retail electricity market, in addition to the principles stipulated in Articles 5 and 6 of this Decision, it will operate according to specific principles.
Accordingly, electricity retail units include electricity retail units established on the basis of reorganizing the electricity sales business department in newly established Power Corporation, Power Company and newly established electricity retail units that meet the prescribed conditions are allowed to buy electricity from power generation units, electricity wholesale units through bilateral contracts and from the electricity market to immediately sell electricity to electricity customers.
Electricity customers who meet the prescribed conditions can choose to buy electricity from one of the electricity retail units; the electricity purchase price is determined in an agreement and agreement between electricity customers and electricity retail units in accordance with the operation of the competitive electricity retail market.
Electricity customers who do not meet the conditions or do not choose to participate in the competitive electricity retail market to continue buying electricity from existing electricity retail units, with retail electricity prices regulated by competent state agencies.
Electricity distribution units perform the obligation to provide electricity distribution services to electricity retail units and wholesale customers to ensure the principles of fairness, transparency, no discrimination and open access within the power grid under their ownership, management and operation.
The conditions for participating in the competitive retail electricity market for electricity customers are regulated by the Ministry of Industry and Trade in accordance with the development stages of the competitive retail electricity market.
