Voters in many provinces want to reduce electricity prices, worried about having to pay losses to the electricity industry

Voters want a plan to reduce electricity prices - Photo: EVN

The Ministry of Industry and Trade has just responded to the petitions of several National Assembly delegations regarding electricity prices and ensuring electricity supply.

Accordingly, the National Assembly Delegation of Ba Ria - Vung Tau province reflected voters' concerns that in 2023, the electricity industry increased electricity prices twice due to losses, while people only need to delay paying their electricity bills for 1-2 days before the electricity company cuts off the power.

People are worried that if they are only 1-2 days late in paying their electricity bills, the electricity will be cut off.

Therefore, voters request the Government, the Ministry of Industry and Trade and relevant agencies to inspect the business situation of the electricity industry and consider reducing electricity prices for people, especially in difficult economic conditions.

Similarly, Hanoi voters also want timely measures to stabilize electricity and gasoline prices when the price increase of these items leads to an increase in commodity prices, causing difficulties for business production and people's lives.

Voters in Da Nang reported that electricity prices are increasing rapidly and the calculation of electricity prices is not reasonable, because people have to indirectly pay for the electricity industry's losses. Therefore, voters recommended that the Ministry of Industry and Trade direct price reduction, stabilize electricity prices, and have a reasonable way of calculating electricity prices to reduce difficulties.

Voters in Tien Giang province requested the Ministry of Industry and Trade to consider amending the decision on electricity prices, in the direction of increasing the usage limit of household customers at level 1 of the retail electricity price list from 0-50kWh to 0-100kWh to suit people's needs.

Meanwhile, voters in Vinh Phuc province assessed that although the electricity industry has contributed to the country's development, there are still power shortages, rotating power outages, and electricity price increases that people are concerned about.

Therefore, voters propose to soon create conditions for economic sectors to participate in the process of electricity production and distribution.

Responding to these issues, the Ministry of Industry and Trade said that according to the provisions of Decision 24 of the Prime Minister (currently replaced by Decision 05/2024 on the mechanism for adjusting the average retail electricity price), every year the Ministry of Industry and Trade organizes an interdisciplinary inspection team to inspect the costs and prices of electricity production and business of Vietnam Electricity Group (EVN) after reporting the final settlement of electricity production and business costs, the financial statements of EVN and its member units have been independently audited.

After the inspection is completed, the Ministry of Industry and Trade will publicly announce the inspection results, including actual costs and business results (including losses/profits). The results of the inspection of electricity production and business costs and annual electricity prices will be one of the bases for considering adjusting the average retail electricity price.

Adjusting electricity prices to reflect true costs

The Ministry of Industry and Trade affirmed that the adjustment of retail electricity prices in 2023 is in accordance with the provisions of Decision 24, reflecting EVN's electricity production and business costs and only including actual costs directly serving EVN's electricity production and supply, as well as assessing the impact on the overall macro economy, business production and people's lives.

Responding to the possibility of price reduction, the ministry said that electricity price management is currently implemented according to the provisions of Decision 05/2024, electricity prices are considered and adjusted according to fluctuations in costs of stages in the electricity production and supply chain and costs not yet included in the electricity price.

In case the calculated electricity price decreases by 1% or more compared to the current price, the electricity price will be adjusted accordingly; and if the electricity price increases by 3% or more, it will be considered for an increase. However, because the electricity price is a commodity that affects people and businesses, in case the increase by 10% affects the macro economy, the Ministry will report to the Prime Minister for consideration and comments.

Regarding the power outages that people have reported, the Ministry of Industry and Trade believes that it must comply with regulations on conditions and procedures for stopping and reducing power supply. If the power unit cuts off power in violation of regulations, it will be punished according to relevant regulations.

Regarding the proposal to amend the price structure, the Ministry of Industry and Trade said that changing the retail electricity price structure will have a major impact on electricity customers, as some groups will have to pay higher electricity bills and others will have to pay lower electricity bills.

Since 2022, the Ministry has been soliciting opinions on the plan to improve the retail electricity price list, in which the retail electricity price list for household use has been shortened from 6 levels to 5 levels and is currently being finalized to report to the Government for consideration and approval.

Regarding attracting investment in the electricity sector and ensuring electricity supply, the ministry said that in Decision 500 approved by the Prime Minister on the 8th electricity plan, it has diversified investment forms with electricity projects, as well as continued to negotiate and attract funding sources, and arrange capital from organizations to implement the energy transition.

Source: https://tuoitre.vn/cu-tri-nhieu-tinh-muon-giam-gia-dien-ban-khoan-phai-tra-khoan-lo-cho-nganh-dien-20240903103341188.htm