HÀ NỘI — Eligible electricity users will have the right to choose their power suppliers starting in 2027, with retail prices to be determined through direct negotiations rather than the fixed tariffs, according to a proposal from the Ministry of Industry and Trade.

The ministry has completed a draft prime ministerial decision on a roadmap, principles and structure for the power sector towards the formation of a competitive electricity market in Việt Nam.

Under the draft, the country’s electricity market is being developed in three stages. 

The first stage, a competitive power generation market, has officially been operating since 2012. Next, a competitive wholesale electricity market started in 2019 and has continued to be improved, expanding electricity trading among power generators, wholesalers and retailers.

Finally, the third stage is a competitive retail electricity market, which is scheduled to officially operate in 2027, running in parallel with the competitive wholesale market to establish a competitive environment in which there are plenty of buyers and sellers to increase competition.

Eligible consumers will be allowed to purchase power from the retail electricity company of their choice, with prices agreed by mutual negotiation between the relevant parties. 

Consumers who do not meet requirements for eligibility or who opt not to join the competitive retail market will continue to buy electricity from existing retailers at fixed prices set by the Government.

Electricity distribution units are required to provide distribution services to retailers and consumers on the basis of fairness, transparency and non-discrimination.

The trade ministry said that establishing a competitive wholesale market, restructuring the power sector, and retail electricity pricing reforms are critical steps to ensure the effective rollout of competitive electricity markets towards the sustainable development of the sector. — VNS