Providing information at a press conference this afternoon, November 9, Mr. Nguyen Dinh Phuoc, Chief Accountant of Vietnam Electricity Group (EVN), said that the adjustment of electricity prices is implemented according to Decision 24 of the Prime Minister.
Regarding the reason for the increase in electricity prices, Mr. Phuoc explained that this year there were some input parameters affecting EVN's costs. Accordingly, hydropower output decreased by nearly 17 billion kWh due to prolonged drought and El Nino. Fuel prices also remained at very high levels.
Specifically, coal prices in 2023 increased by 29 - 46% compared to the level applied in 2021. Oil prices also increased by about 18% compared to 2021. In particular, foreign exchange rates have increased sharply by nearly 4% to date and affected EVN's input costs.
The 4.5% increase in electricity prices from November 9 will help EVN earn an additional revenue of more than VND3,200 billion from now until the end of the year.
“ The Group has reported to ministries and sectors, assessed the impact of the consumer price index (CPI) and asked the Government for permission to adjust electricity prices. The 4.5% increase in electricity prices will help EVN increase revenue by about VND3,200 billion from now until the end of the year.
This amount helps the group reduce difficulties due to high input costs. The current retail price of electricity is still lower than the cost price. However, to ensure social security, the group has proposed to increase the electricity price lower than the actual cost increase," said Mr. Phuoc.
According to EVN representative, in the current cost structure, electricity purchase cost accounts for 83% of the cost of electricity industry. The remaining 17% is the cost of transmission and distribution. To limit the impact of price increase, the group also requires units to thoroughly reduce and cut costs.
According to Mr. Nguyen Quoc Dung, Head of EVN Business Department, the increase in electricity price will affect the poor and those who are subject to policies. However, according to current regulations, these groups will be supported with the first 30 kWh in cash. For households that use the most electricity, from 401 kWh or more, each month only has to pay an additional 55,600 VND/month.
Regarding keeping electricity prices lower than cost prices, not properly calculating all costs and affecting business operations, EVN representative said that the Group has reported to the Government and the Ministry of Industry and Trade.
Also answering the press at the press conference, Mr. Tran Viet Hoa, Director of the Electricity Regulatory Authority (Ministry of Industry and Trade), said that this electricity price adjustment does not include the exchange rate differences of more than VND14,000 billion from previous years. All of these exchange rate differences are still being held because if included in the electricity price, the price will increase very sharply.
“Increasing electricity prices will affect manufacturing industries and input material prices. It is estimated that increasing electricity prices will increase the CPI by 0.035%,” said Mr. Hoa.
From today, November 9, EVN has decided to adjust the average retail electricity price, accordingly the average retail electricity price is 2006.79 VND/kWh (excluding value added tax).
EVN assessed that the cost of electricity production and business in 2021 and 2022 showed that the cost of electricity production and business in 2022 was VND 2,032.26/kWh, an increase of 9.27% compared to 2021.
According to calculations, the cost of electricity production in 2023 will remain high, and the cost of electricity in 2023 will continue to be higher than in 2022. The cost of electricity production and business in 2023 is estimated at about 2,098 VND/kWh.
For service business customers (547,000 customers), after changing the average monthly price, they will pay an additional 230,000 VND/month for electricity. Manufacturing customers (1,909 thousand customers), after changing the average monthly price, they will pay an additional 432,000 VND/month for electricity. For administrative and career customers (681 thousand customers): after changing the average monthly price, they will pay an additional 90,000 VND/month for electricity.
PHAM DUY
Source
Comment (0)