The Ministry of Industry and Trade proposes three options for retail electricity price structures applicable to electric vehicle charging stations in the latest draft Decision of the Prime Minister regulating electricity price tables.
Proposed new electricity rates for electric vehicle charging
The Ministry of Industry and Trade has proposed the following options for electricity prices for electric vehicle charging:
Option 1: Apply the business electricity rate for electric vehicle charging (as suggested by EVN).
According to the Ministry, this option could have a (negative) impact on electric vehicle development policies by increasing charging costs. It also does not accurately reflect the costs incurred by charging stations and infrastructure on the power system, continuing to create cross-subsidization among customer groups.
Option 2: Apply the business rate for the customer group of electric vehicle charging stations based on a new retail electricity price structure in the Appendix to the draft Decision, taking into account the different electricity usage characteristics of this customer group compared to other business customers. The retail electricity price table for charging stations is constructed based on electricity prices reflecting the production costs incurred by the charging station/infrastructure on the power system.
The retail electricity price table for charging stations is designed based on electricity prices reflecting the 2023 production and trading costs incurred by the charging station/infrastructure’s load on the power system (typical load curve of charging station/infrastructure). It ensures cost allocation to electricity users without cross-subsidization between the group of charging station customers and other customer groups.
According to calculations, the retail electricity price table for charging station customers is lower than the structure applied to business customers and higher than that applied to manufacturing customers.
Option 3: Apply the production electricity rate for electric vehicle charging (as suggested by the Ministry of Transport, VinFast Trading and Services LLC, and VinFast Manufacturing and Trading JSC).
This option could positively impact electric vehicle development policies by reducing charging costs. However, it will affect the retail electricity price structure as applying a lower production electricity rate for charging purposes will lead to increased electricity prices for other customer groups to balance revenues.
This means that cross-subsidization will occur from other customer groups to the group of charging station customers.
Analysis from the authorities shows that if the production rate is applied to charging stations, they will pay less than the actual costs incurred on the power system, averaging between 552 VND/kWh and 699 VND/kWh depending on the voltage level.
On the other hand, if the business rate is applied, charging stations will pay more than the actual costs incurred on the power system, averaging between 467 VND/kWh and 587 VND/kWh depending on the voltage level.
Options 1 and 3 will continue to generate cross-subsidization among electricity user groups, which may not align with the orientation stipulated in Resolution No. 55-NQ/TW dated February 11, 2020, of the Politburo on the orientation of the National Energy Development Strategy of Vietnam by 2030, with a vision to 2045 (“no cross-subsidization among customer groups”) and the roadmap to reduce cross-subsidization stipulated in Point c, Clause 3, Article 50 of the 2024 Law on Electricity.
Option 2 is based on electricity prices reflecting the costs incurred by the electric vehicle charging customer group on the power system. Based on the above analysis, the Ministry of Industry and Trade proposes considering the selection of Option 2.
Ha Linh (ANTĐ)
