If EVN's losses are added, electricity prices will increase sharply
The draft amendment to Decree 72 on the mechanism for regulating electricity prices caused controversy when it proposed to calculate the loss of more than VND 44,000 billion of Vietnam Electricity Group (EVN) in electricity prices. Experts say that it is necessary to separate costs reasonably, it is impossible to just "EVN will compensate for the loss".
Speaking with Lao Dong, Dr. Ngo Duc Lam - Former Deputy Director of the Institute of Energy (Ministry of Industry and Trade) - said that, first of all, the Ministry of Industry and Trade and EVN must clearly announce the reasons for including EVN's loss in the electricity price. At the same time, it is recommended that the Ministry of Industry and Trade should inspect and announce the specific cause of EVN's loss.
He noted that electricity prices are a sensitive issue. Currently, the average retail price of electricity has been higher than before - after many consecutive price increases, causing difficulties for households. If this loss is added, electricity prices will increase sharply.
According to Mr. Lam's analysis, before considering compensation for losses, it is necessary to look back at the average electricity price structure. In the current average electricity price, all factors that create cost have been included: from fluctuations in raw prices, fuel materials, foreign exchange rates, salary costs for electricity staff, to transmission costs... Even profits have been calculated. Therefore, if additional losses are added, the entire average electricity price must be recalculated to ensure reasonableness.
Mr. Lam also said that current electricity prices have approached the market mechanism according to the provisions of the Electricity Law, towards competition. If EVN's loss is calculated in electricity price, it will go against market principles, distorting the operating mechanism.
At the same time, the electricity industry needs to look back at the long-term inadequacies in price policy, such as the price list progressive in order, which has been criticized by many opinions because the difference is too large, creating an unreasonable "crossing" situation. These shortcomings have not been thoroughly addressed, and now there are additional unsatisfactory proposals, which will certainly make it impossible for public opinion and people to accept.
The Decree is not yet complete... has been amended
Talking to Lao Dong, Dr. Nguyen Huy Hoach - Member of the Scientific Council of the Vietnam Energy Association - said that there is a basis to assess the loss of more than 44,000 billion VND of EVN.
The reason is that currently, the input price of the power system has many different levels, in which wind power, solar power, LNG power are all higher than the average electricity price; at the same time, EVN also has to carry out the task of supplying electricity to remote areas, islands, etc.
If not handled, the possibility of EVN arising bad debts and limiting reinvestment is very high. At that time, the bank will assess a higher level of risk, causing renewable investment activities to stagnate, thereby directly affecting national energy security.
However, from the consumer's perspective, according to Dr. Hoach, it is difficult to sympathize with the entire calculation of this loss in the electricity price. People want EVN to operate effectively, but above all, it must be transparent. Therefore, it is necessary to clearly identify which loss is reasonable to allocate, but it is impossible to arbitrarily " repay EVN's loss as much as it loses" in electricity prices.
He emphasized that Decree 72 has just been issued by the Government and took effect from March 28, which is only a few months old, not yet complete. However, the agency advising on the development of the decree, the Ministry of Industry and Trade, has not fully calculated the issues related to the pricing structure. Raising the issue of EVN's losses and then quickly proposing to amend the decree to compensate for losses for businesses is not convincing.
In reality, in July, when the heat was hot, the electricity bills of many households skyrocketed. In that context, if EVN does not ensure transparency and does not announce a reasonable roadmap for allocating losses, it will be difficult to receive social consensus. This not only directly affects people's lives but also affects the operations of the entire economy.
Therefore, Dr. Hoach said that ministries and branches need to sit together to separate the reasonable losses that can be allocated to electricity prices, and at the same time study and announce a suitable roadmap, with criteria to minimize the impact on customers, especially vulnerable groups.
He also noted that this is just a temporary solution. The revised Electricity Law has clearly stated the orientation towards eliminating cross-subsidy mechanisms in electricity prices, and this needs to be implemented soon to ensure fairness among customer groups.
Because in reality, the current electricity price structure is still unreasonable: the household sector is paying a higher price than the producing sector. Meanwhile, the State has policy of keeping electricity prices low for production to support investment, but the majority of profits belong to FDI enterprises, accounting for 70-80% of import-export turnover.
This means that cheap electricity prices for production mainly benefit foreign enterprises, while domestic people have to bear the difference. This is the reason for the prolonged public outrage.
"Therefore, it is necessary to study a reasonable roadmap to gradually apply the electricity price mechanism according to the market, ensuring both transparency and harmony of interests of businesses, people and the entire economy", Dr. Nguyen Huy Hoach emphasized.
