According to a representative of the Hanoi Supporting Industry Enterprises Association (HANSIBA), the price increase is expected to have an impact on businesses, but not much.
The Ministry of Industry and Trade has just decided to adjust retail electricity price The average price has increased from VND 2,006.79 to VND 2,103.11/kWh (excluding VAT), equivalent to an increase of 4.8% (excluding VAT). This price increase has been predicted by many businesses and they have prepared plans to respond to the impact.
Negligible impact
According to calculation of Vietnam Electricity Group (EVN), the increase in electricity price to 2,103.11 VND/kWh, equivalent to 4.8%, does not affect people's lives.
Mr. Nguyen Quoc Dung - Head of EVN Business Department said that for the group of household customers, the current rate of household electricity usage is divided into consumption levels, from low to high. 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.
Along with the adjustment of household electricity prices, the new retail electricity prices applied to manufacturing industries have also been adjusted. For voltage levels from 22 kV to under 110 kV, the price ranges from 1,749 - 3,242 VND/kWh, depending on the time frame. For voltage levels from 6 kV to under 22 kV, the selling price ranges from 1,812 - 3,348 VND/kWh, depending on the time frame.
For the administrative sector, the new retail electricity price is from 2,040 - 2,124 VND/kWh depending on the time frame and voltage level. The retail price for the business sector has a difference between peak and off-peak hours and voltage level, respectively 1,525 VND and 4,795 VND/kWh. These prices do not include VAT.
Mr. Nguyen Van Ket, Director of SKD Vietnam Precision Mechanical Company, shared that the increase in electricity prices was in the business's plan as soon as there was information related to the loss of the electricity industry. In the past, the increase in input fuel costs has been well understood by businesses. The increase in electricity prices at 4.8% will certainly affect businesses, but it can be said that it will not have too big an impact. Electricity prices account for about 20-30% of the price structure of finished products. When electricity prices increase, the impact cost is only about 5% and this is acceptable.
"The current difficulty for businesses is finding orders for next year and focusing on production for year-end orders. We ourselves are also trying harder to improve production technology and save electricity. In recent times, the electricity industry has made great investments and changes in business and customer services. Hopefully, with this price increase, we can offset costs, help invest in projects, and provide stable and better electricity supply," said Mr. Ket.
According to the representative of the Hanoi Supporting Industry Enterprises Association (HANSIBA), the price increase is considered to have an impact on businesses, but it will not be large and is not a matter of great concern to the business community. The problem here is that along with the increase in electricity prices, the electricity industry must also ensure better quality and stability of the power source. According to our assessment, the quality of electricity in recent times has also been very good.
Businesses promote electricity saving
Many businesses believe that increasing electricity prices will have an impact, although not a big one. However, this will also promote more energy saving.
Mr. Nguyen Quang Vinh, representative of Tam Nhin Viet Company, said that increasing electricity prices is an inevitable rule to ensure energy security, while ensuring financial indicators for the sustainable operation of the electricity industry. The price increase will help people use electricity more responsibly. When electricity prices increase, production facilities will more or less have to restructure costs, optimize production lines to operate more economically; at the same time, it also accelerates the transition to self-consumed renewable energy forms such as rooftop solar power.
Mr. Ha Quang Hien - Chief of Office of Vietnam Cement Corporation said that the increase in electricity price is in the company's plan. Although it is affected by many other input costs, the increase in electricity price is considered inevitable in the context of the electricity industry facing difficulties due to high input production costs such as coal and oil. The plan also takes into account the increase in electricity price.
"The increase in electricity prices forces businesses to recalculate production, implement more cost reductions, and use electricity more efficiently," said Mr. Ha Quang Hien.
Sharing the same opinion, Mr. Nguyen Dinh Dung - General Director of VICEM Hoang Mai Cement Joint Stock Company said that the increase in electricity price is completely appropriate when input costs increase. Although the company has self-sufficient about 30% of electricity production, the amount of electricity consumed by the company is still very large. Therefore, the company will calculate to restructure production, optimize to reduce costs.
According to Mr. Bach Hong Long, Deputy General Director of Garment 10 Corporation, the adjustment to increase the average retail electricity price by 4.8% creates more pressure on the production and business activities of enterprises. To cope, enterprises are making efforts to apply measures to save electricity, optimize production and business...
According to the Vietnam Textile and Apparel Association, businesses are aware that increasing electricity prices is inevitable due to input pressure from electricity production. However, increasing at this time is also a challenge and difficulty for businesses due to great competition in the market, shortage of orders and only recovering at the end of this year.
To adapt to the increase in production costs, including electricity prices, the textile industry itself has set out solutions for development goals, in which businesses have used solar power (rooftop). Currently, some businesses such as May 10, Viet Tien... have invested in rooftop solar power to reduce difficulties in electricity costs.
From the challenge of increasing electricity prices, textile and garment enterprises must also calculate and tighten investment costs to balance prices and ensure competitiveness with enterprises in the region.
According to experts, the increase in electricity prices, in addition to correctly and fully calculating the costs of production and business for enterprises, also creates pressure for saving electricity and using electricity more efficiently. To invest in solutions for saving and using energy efficiently, it is necessary to have a large enough investment to change production lines and technology, but with low electricity prices, enterprises will have less "motivation" to invest.
Mr. Ha Dang Son, an energy expert, said that low electricity prices will help ensure social security and stabilize economic indicators, but in return, users will not have the motivation to change their behavior and consumption habits.
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