Responding to VTC News on the sidelines of the National Assembly, many delegates said that before wanting to increase prices, the authorities must clarify many issues of the electricity industry, find bottlenecks to remove, not just ask for an increase in electricity prices because of losses.
Delegate Nguyen Thi Viet Nga, Deputy Head of the National Assembly Delegation of Hai Duong Province, said: “ There are many reasons for EVN reporting losses, including objective reasons as EVN has explained. However, in my opinion, there are also subjective reasons that lie in the business management and calculations of the enterprise. It is necessary to review and carefully study the reasons why EVN has been making losses in production and business for such a long time. From there, we can see the bottlenecks to remove them, not just increase electricity prices every time there are losses, unintentionally causing the loss to fall on the people .”
According to Ms. Nga, " increasing electricity prices is only one solution, not all of them ." EVN must innovate its management and business methods to maximize savings on input materials and operate effectively. Before EVN considers increasing electricity prices, the group needs to review the structure of electricity pricing to make it most reasonable so that people, businesses, and EVN do not suffer losses.
Not every time there is a loss, electricity prices increase, unintentionally the disadvantage falls on the people.
Ms. Nguyen Thi Viet Nga, National Assembly Delegation of Hai Duong Province
Ms. Nga also commented that the recent 3% increase in electricity prices has not had too great an impact on people's lives. However, the current problem is that the electricity price scale is not suitable for current conditions.
“There are manufacturing industries that require different electricity prices for production and business than for household electricity, and the current household electricity prices are not very reasonable. Then there are industries that need to be given preferential electricity prices but currently have to pay very high electricity prices, or there are industries that are no longer in the preferential areas but are still given incentives,” said delegate Nga.
Electricity prices have just increased by 3% in early May 2023, EVN has continued to propose increasing electricity prices in September 2023. (Illustration photo: Baochinhphu.vn).
Regarding the issue of not being able to connect renewable energy sources to the national power grid, the Russian delegate said that he had heard EVN explain many times and also heard people complain a lot about losing money investing in solar power systems. EVN had committed to buying all of them, but so far they have only bought them in small amounts, while in reality we are facing a huge risk of power shortages, especially in the summer, when the demand for electricity increases.
“To thoroughly resolve this issue, we cannot rely on conjecture, but need careful supervision and investigation. Currently, EVN’s response and people’s feedback have not met, I think we need to make this issue transparent to answer people’s and businesses’ opinions and also for EVN to explain more clearly and distinctly,” Ms. Nga suggested.
People not related to EVN's losses
Meanwhile, delegate Le Thanh Van (Ca Mau delegation) said: " People are not related to EVN's losses, it is due to poor electricity production and price management, not saving on machinery leading to high costs ."
Mr. Van also pointed out the reason for the current "oversupply" of renewable energy. According to him, electricity production needs to go hand in hand with improving transmission infrastructure, but recently these two tasks have not been implemented synchronously.
“ Sometimes, we agree to add a series of renewable energy projects, but when they are produced, the transmission capacity is limited, leading to electricity that cannot be consumed. Along with that, the legal basis of the projects is also not transparent, causing difficulties when connecting to the network, ” Mr. Van said, adding that if these problems were resolved in advance, there would be no shortage of electricity and no need to increase electricity prices.
People have nothing to do with EVN's losses. It is due to poor electricity production and price management, and a refusal to save on machinery, leading to high costs.
Delegate Le Thanh Van (Ca Mau delegation)
Delegate Van also said that it is necessary to review the cost of the power transmission system and the cost of electricity production of EVN when many people are still concerned that this cost is too high due to the cumbersome operating apparatus, which is fully included in the price.
“There was a period when public opinion raised the issue of EVN using accumulated money to invest in real estate and resorts, leading to losses, and then calculating it all into electricity prices. I don’t know how far the investigation into this issue has gone, as it has not been made public yet,” Mr. Van wondered.
According to delegate Le Thanh Van, EVN is a state-owned enterprise with a leading role in electricity production and supply, but many National Assembly delegates believe that it is necessary to inspect and examine the role of EVN to answer the National Assembly about the management and administration of this enterprise, why it makes losses every year, losses of tens of thousands of billions, and then calculates it all into the electricity price, causing people to suffer.
He said that the current roadmap for socialization of the electricity industry is still slow, and the more monopoly there is, the more price abuse is inevitable.
“It is necessary to soon implement that roadmap so that economic sectors can participate in electricity production and transmission. The State should only have a monopoly on distribution, separating the State management function from the business function to ensure the national energy security strategy,” Mr. Van said.
Delegate Le Thanh Van was interviewed by VTC News on the sidelines of the National Assembly about EVN's proposal to continue increasing electricity prices.
At the National Assembly's group discussion session on the socio-economic situation, many National Assembly deputies also requested clarification of responsibilities, review of spending, and living conditions of electricity sector leaders in the context of such losses... Delegate Ta Thi Yen (Dien Bien delegation) said that voters are very concerned about the adjustment of electricity prices.
"In all reports, EVN has confirmed that its electricity production and business are continuously losing money. However, the report has not yet clarified the cause and specific solutions for EVN's loss of more than VND26 trillion in 2022," said the delegate.
It is worth noting that, in the same ecosystem, the parent company reported losses while its subsidiaries still announced high profits in 2022. Typically, two enterprises under EVN, Power Generation Corporation 3 and Power Generation Corporation 2, both recorded after-tax profits in 2022 of VND 2,550 billion and VND 3,668 billion, respectively.
“I think it is necessary to clarify the cause of this loss. If it is said that it is due to high input prices, including fuel, interest or exchange rate losses, then the subsidiaries are also facing this difficulty. Why are the results different? Is this a problem of management capacity?”, delegate Yen asked.
EVN proposes to continue increasing electricity prices in September 2023
In a report submitted to the Government, EVN proposed to continue increasing electricity prices in September 2023 because it believes that the 3% increase in electricity prices from the beginning of May 2023 has not balanced costs.
Specifically, EVN proposed to amend Decision No. 24/2017/QD-TTg of the Prime Minister to allow timely adjustment of retail electricity prices according to basic input parameters in the stages of power generation, transmission, distribution and electricity trading in the period of 2023-2025. At the same time, EVN is allowed to continue adjusting retail electricity prices from September 1, 2023 to offset the additional costs due to high input costs according to regulations, ensuring financial balance for EVN.
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