To increase electricity prices more convincingly

There needs to be a complete policy mechanism framework for electricity market operation, electricity prices, and improving investment efficiency in the electricity sector - Photo: QUANG DINH

It is worth mentioning that every time a loss is announced, the refrain of price increase is given as the only solution to solve the loss of this group.

It can be seen that Vietnam has long attracted investment with the advantage of cheap labor and low electricity prices for production. The cheaper the electricity price, the more it attracts industries that consume a lot of electricity, have outdated technology, and produce products with low technical content and added value.

Thus, low electricity prices do not create incentives for technological innovation and electricity saving.

Although cheap electricity is a competitive advantage for developing countries, too low an electricity price will make it difficult to attract investment in power plants, leading to power shortages.

For a long period of four years from 2019 to 2022, electricity prices have not been adjusted, causing many input costs to accumulate.

This creates pressure to increase prices, from 2023 to now, electricity prices have had to be adjusted up three times.

Therefore, it is necessary to properly implement regulations on electricity price adjustment mechanisms to avoid consecutive price increases as in the past to reduce "shocks" in electricity prices.

Price increases are inevitable as the source structure becomes cleaner and prices become higher. But the question is how can the electricity industry improve the efficiency of capital use in construction investment and management; how can people and businesses use electricity more economically and efficiently?

Therefore, increasing electricity prices is only truly convincing when this energy source is produced and used on the basis of maximum savings and efficiency.

There needs to be a complete policy framework for electricity market operations, electricity prices, and improving investment efficiency in the electricity sector. The electricity sector also needs to restructure its operations, further improve its management capacity, and investment efficiency to make efforts to reduce costs.

At the same time, choose advanced, high-efficiency power generation technology. Improve power system infrastructure, smart grid.

Along with that is the promotion of electricity saving, improving productivity, efficiency of electricity use and reducing electricity loss. This is to achieve the goal of saving at least 2% of electricity and electricity loss across the entire system at below 6% by 2025.

In addition, businesses also need to actively participate in the load adjustment program, reducing electricity demand during peak hours, with the goal of reaching at least 1,500MW by 2025. Encourage the installation of rooftop solar power so that by 2030, 50% of office buildings and 50% of homes use self-produced and self-consumed rooftop solar power.

When 1kWh of electricity consumption generates 1.6 USD of GDP, it is necessary to have a policy mechanism to stimulate industries that consume less electricity but create high GDP value, instead of industries that consume a lot of energy.

Along with perfecting the electricity price mechanism and soon issuing a two-component electricity price mechanism, there should be resource tax policies for industries that consume large amounts of electricity, use outdated technology and have low economic efficiency.

Source: https://tuoitre.vn/de-tang-gia-dien-thuyet-phuc-hon-20241017084727739.htm