Adjusting electricity prices requires caution and careful calculation
In the context of EVN's loss of up to 26,700 billion VND in 2023, many energy experts say, is it possible that electricity prices may continue to be adjusted to increase in the near future?
Talking to Labor, Dr. Ngo Duc Lam - former Deputy Director of the Institute of Energy (Ministry of Industry and Trade) said that it is necessary to be extremely cautious and carefully calculate the issue of increasing electricity prices. It is necessary to see whether the economy and people can withstand the third increase in electricity prices?
If electricity prices must be increased, according to Mr. Lam, the increase in electricity prices should be less than 5% under EVN's authority to adjust. However, Dr. Ngo Duc Lam said that before thinking about increasing electricity prices, EVN needs to publicly and transparently disclose revenues, expenses, electricity purchase prices for each type of electricity generation and selling prices for each object. using electricity, thereby, consumers will understand the reason why it is necessary to adjust electricity prices. Besides, research the roadmap towards electricity selling price according to market mechanism.
Dr. Nguyen Huy Hoach - Vietnam Energy Science Council - said that in order to avoid the risk of power shortage, in recent times, EVN has mobilized high-cost power sources, including oil-fired power, gas power, renewable electricity.
It is necessary to make transparent the cost of electricity production
Talking to Lao Dong, economic expert Vu Vinh Phu - former Deputy Director of Hanoi Department of Industry and Trade - said that adjusting electricity prices will shorten the price increase cycle from 6 months to every 3 months; Electricity prices will be decentralized to EVN and the Ministry of Industry and Trade to make adjustments.
The important thing is that the increase in electricity prices from now until the end of 2024 will certainly impact prices, the market, and the price competitiveness of domestic products...
According to Mr. Phu, before increasing prices, EVN needs to make public and transparent the electricity production cost per 1kWh (confirmed by audit and the national accreditation council). Pay special attention to large cost groups in electricity prices such as salaries, procurement of materials and equipment, foreign exchange rates...
The cross-subsidization of electricity prices between production prices and family living prices has existed for many years, and many opinions request a change (residential electricity prices are higher than production electricity prices). This leads to discouraging manufacturing enterprises from investing in technology and equipment innovation to save electricity, and Vietnamese social consumers are unreasonably disadvantaged.
EVN needs to accelerate power projects into operation according to Power Plan 8 that the Government has approved, encourage solar and wind renewable energy... balance power generation sources appropriately to create an electricity price. On average, each period is most reasonable and economical for society and consumption.
Finally, there is the work of organizing the implementation of the Government's decision on the average retail price in Vietnam, strengthening inspection and auditing to ensure fair and transparent competition.
Fuel prices for electricity production remain high
In the report summarizing the results of implementing the 2023 plan, EVN said that although EVN and its units have made efforts to implement solutions such as saving costs (saving, reducing 15% of regular costs , from 20-50% of major repair costs). At the same time, the average retail electricity price has been adjusted to increase twice (up 3% from May 4, 2023 and up 4.5% from November 9, 2023) but is still not enough to offset electricity production costs. should continue to suffer losses in electricity production and business for the second consecutive year.
According to EVN, the main reasons for increasing electricity production costs include fuel prices remaining high. In addition, the structure of power source mobilization is not favorable due to the poor water situation in hydroelectric reservoirs, causing hydropower output to decrease, while increasing mobilization of coal, oil, and renewable energy thermal power plants is expensive. The cost is higher than the cost of hydroelectricity. The cost of purchasing electricity in the electricity market is high, the payment cost increases compared to the contract electricity price.
