VCCI proposes to support electricity prices for groups of customers using electric vehicles

The Vietnam Federation of Commerce and Industry believes that the current price mechanism does not encourage the use of electric vehicles, and still have to pay relatively high electricity prices to be able to charge the battery.

Accordingly, VCCI – Vietnam Confederation of Commerce and Industry said that electric vehicles are being encouraged by the State, thanks to helping reduce air pollution in urban areas. However, currently, vehicle owners still have to pay relatively high electricity prices to be able to charge their batteries.

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Thanks to that, VCCI has just commented on the Prime Minister’s draft decision on the electricity retail price structure. The agency also assessed: “If you charge at home, you will usually have to pay electricity at a price of about 3,100-3,200 VND/kWh. Service points also often charge a price of more than 3,100 VND/kWh due to the high input electricity purchase price. Mechanism Such prices do not help encourage the use of electric vehicles nor contribute to adjusting user behavior to change charging hours during off-peak hours.”.

Therefore, the commenting agency suggested prioritizing lower electricity prices for customer groups using electricity for vehicles to encourage this type of vehicle. “Suppose, an electric car costs about 1 million VND per month to charge the battery at a price of about 3,100 VND/kWh. If the off-peak electricity price drops to only 1,600 VND/kWh, each month we can save about 450,000 VND, about 5.4 million VND per year. If you take the life of the electric meter as 10 years, then the electricity bill saved after 10 years is about 54 million VND.”cited by VCCI.

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In addition, this agency also proposed that the electricity price for this group of customers will be divided into peak, off-peak and average hours, applying a two-component electricity price mechanism (capacity price and electricity price) for the customer group. this product, regulating the roadmap for implementing this form of electricity sale. The application of a two-component electricity price mechanism (capacity price and electricity price) is the right direction and needs to be promoted.

However, the draft does not provide any specific measures to achieve this goal. Therefore, it is recommended that the drafting agency provide more specific regulations on the two-component electricity price mechanism. Accordingly, the Ministry of Industry and Trade is assigned to detail the roadmap for piloting the two-component electricity price mechanism. In areas where piloting is allowed, users have the right to choose the price mechanism (either the conventional mechanism or the two-component mechanism) when concluding a power purchase contract.

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