The electricity price increase has been carefully considered.
On the afternoon of October 11, Vietnam Electricity Group (EVN) held a press conference to discuss changes in retail electricity prices in 2024. Accordingly, the average electricity price will increase from VND 2,006.79 to VND 2,103.11/kWh (excluding VAT). This decision has been approved in principle by the Government and the Ministry of Industry and Trade.
At the press conference, Lao Dong Newspaper reporters asked which facility increased electricity prices this time and how the increase in electricity prices affected people's lives when the recent storm No. 3 had a very serious impact on people's lives and the economy?
Responding, Mr. Nguyen Xuan Nam - Deputy General Director of Vietnam Electricity Group said that in November 2023, the electricity price was increased and the next increase is now. The increase in electricity price is in compliance with Decision 05 of the Prime Minister regulating the mechanism for adjusting the average retail electricity price and Circular 09 providing detailed instructions on Decision 05.
"The increase in electricity price from VND2,006.79 to VND2,103.1159 per kWh (excluding VAT), equivalent to 4.8%, has been balanced by the Government, without affecting people's lives, social security and the country's development," said Mr. Nam.
According to Mr. Nam, this electricity price increase does not affect poor households much because the State's support policy for poor households and social policy households on electricity bills is currently implemented according to Decision No. 28/2014/QD-TTg of the Prime Minister.
Accordingly, poor households are supported with monthly electricity bills equivalent to the amount of electricity used by 30kWh/household/month.
For social policy households with electricity usage of no more than 50 kWh/month, the support level is equivalent to the amount of electricity used of 30kWh/household/month.
The support level for poor households and policy households is 59,500 VND/household/month. If the new price is applied, each poor household will receive electricity support of about 62,500 VND/household/month.
This policy aims to reduce the burden of electricity costs for poor households and social policy households, help ensure social security and implement the Government's policy on supporting disadvantaged groups.
Which subjects are strongly affected by the increase in electricity prices?
Mr. Nguyen Quoc Dung - Head of EVN Business Department said that for the household customer group, the current rate of household electricity usage is divided into consumption levels, from low to high.
Of which, households using less than 50 kWh of electricity (accounting for 11.51% of households), the electricity bill increased by about 4,350 VND/household/month.
For customers using from 51 kWh - 100 kWh (accounting for 15.53% of households), the electricity bill increases by about 8,850 VND/household/month.
For the group of customers using from 101 kWh - 200 kWh (accounting for 34.31% of households, currently the largest customer group), the electricity bill increase is about 19,250 VND/household/month.
For customers using electricity from 201 kWh - 300 kWh (accounting for 18.5% of electricity customers), the electricity bill increase is about 32,350 VND/household/month.
For customers using 301-400 kWh of electricity (accounting for about 8.87% of electricity customers), the electricity bill increase is about 47,050 VND/household/month.
For customers using 400 kWh or more of electricity (accounting for about 11.28% of electricity customers), the electricity bill increase is about 62,150 VND/household/month.
According to Mr. Nguyen Quoc Dung, the total number of household customers using electricity from 200kWh/month or less is 17.41 million households, corresponding to 61.35% of the total number of households using electricity for household use.
According to calculations, the average additional electricity bill for each household consuming 200 kWh/month or less is 13,800 VND/household.
"Thus, the impact on common household customers (consuming less than 200 kWh/month) is moderate, while customer groups with higher electricity consumption will suffer a more significant increase," said Mr. Dung.
