Meeting the electricity needs for the growth target of 8% or more
In 2025, Vietnam sets a target of striving for a GDP growth rate of 8% to create a continuous double-digit growth momentum in the period of 2026-2031. To achieve the above goal, electricity plays a particularly important role, because this is a special commodity product, the "input of all input" of the economy, contributing to ensuring people's lives, security and national defense.
At the seminar "Ensuring electricity for growth - Requirements and solutions" organized by the Government Electronic Information Portal on May 7, National Assembly delegate Phan Duc Hieu, member of the National Assembly's Economic and Financial Committee, assessed that to achieve the above growth target, there is no other way than to promote production, business and consumption. This will inevitably increase the demand for energy and electricity.
"However, energy demand has not only increased in terms of output or energy consumption, but the economy now also has higher demands for the quality of energy sources" - Mr. Phan Duc Hieu assessed.
To ensure electricity supply for 2025, Mr. Doan Ngoc Duong - Deputy Director of the Electricity Department (Ministry of Industry and Trade) - said that since the end of 2024, the Ministry of Industry and Trade has proactively reviewed and developed a power supply plan for 2025. With the target of a minimum economic growth of 8% this year, electricity demand is forecast to grow by about 12% according to the scenario set by the Ministry of Industry and Trade for operation.
"Right from the beginning of the year, the Ministry of Directors of agencies and enterprises in the electricity industry to meet the electricity supply. The Ministry also advised the Government to issue relevant decrees. The Ministry of Industry and Trade has also built and issued a series of Circulars guiding the implementation of the Electricity Law in 2024" - Mr. Doan Ngoc Duong informed.
Electricity prices have not been calculated correctly
According to Mr. Nguyen Tien Thoa - Former Director of the Price Management Department, there are currently 3 major shortcomings in electricity prices.
First, our electricity prices have not been implemented according to the market price mechanism. For many years, it has not been calculated correctly to cover the input costs for the production of 1 kWh of electricity. In addition, electricity prices have not overcome the situation of buying high and selling low that has occurred for many years.
Second, electricity prices have to bear too many targets. In fact, these targets converging in electricity prices do not agree 100% with each other but have conflicts and struggles during implementation. To handle the relationship and ensure harmony between these goals in electricity prices is very difficult, some goals cannot be achieved.
Third, cross-subsidy mechanisms in electricity prices such as cross-subsidy between households, cross-subsidy between household electricity prices and production electricity prices, cross-subsidy in electricity prices between different regions. This mechanism has been going on for too long, making it impossible for us to implement the market price mechanism for electricity.
"Those shortcomings have consequences. Typically, if electricity is not calculated correctly, it will be a loss, the electricity price will not accurately reflect the value of 1 kWh of electricity produced. Electricity prices will become a supply price for the whole society, leading to difficulties in encouraging economic sectors to participate in investing in developing power sources and grids. At the same time, it does not create strong pressure to implement the energy-saving and efficient use strategy, especially in production, business and technological innovation" - Mr. Nguyen Tien Thoa said.
According to Mr. Nguyen Tien Thoa, the electricity industry is always hit by negative cash flow, which can be understood as a loss. That means the inability to balance cash flow makes it very difficult for the electricity industry to regenerate, reinvest and develop sustainably. This also threatens the set energy security goal.
"In my opinion, we need to implement a long-term solution. We must shift electricity price management to implementing the market price mechanism through calculating correctly and fully electricity prices and having to amend the current electricity price list to handle shortcomings. The current electricity price calculation formula requires eliminating other costs and calculating costs at full cost, to have certain profits.
In addition, cross-subsidy with electricity prices must be eliminated and handled by other policies on electricity prices between regions accordingly. Another point is that the current electricity price still shows social policies, so in the coming management, it is necessary to separate social policies from electricity prices" - Mr. Nguyen Tien Thoa proposed.
