Electricity price increase, businesses and people have more "burden"

From November 9, 2023, the average retail electricity price will be adjusted up 4.5% compared to the old price. With the new price list, many businesses, cooperatives and people in Ha Tinh are burdened with worries.

According to Ha Tinh Electricity Company, from November 9, 2023, the average retail electricity price will increase to VND 2,006.79/kWh (excluding value added tax). This adjustment is equivalent to an increase of 4.5% compared to the current average retail electricity price.

The average retail electricity price will increase to VND 2,006.79/kWh (excluding VAT) from November 9, 2023.

It is known that before the adjustment, the average retail electricity price was VND 1,920.3732/kWh (excluding value added tax), adjusted from May 4, 2023 according to Decision No. 377/QD-EVN dated April 27, 2023 on adjusting the average retail electricity price of Vietnam Electricity Group.

On November 8, 2023, the Ministry of Industry and Trade issued Decision No. 2941/QD-BCT regulating electricity prices, promulgating retail electricity prices for groups of electricity customers and retail electricity prices for electricity retailers. According to calculations by Vietnam Electricity Group, for customers using household electricity, after adjusting the electricity price, at level 1 (0-50 kWh), customers will pay an additional electricity bill of up to 3,900 VND/kWh; level 2 (51-100 kWh) will increase by up to 7,900 VND/kWh; level 3 (101-200 kWh) will increase by up to 17,200 VND/kWh; level 4 (201-300 kWh) will increase by up to 28,900 VND/kWh; level 5 (301-400 kWh) will increase by up to 42,000 VND/kWh; level 6 (from 401 kWh and up) will increase by up to 55,600 VND/kWh.

This increase in electricity prices has made business and cooperative owners really worried. Never before have businesses and cooperatives faced so many challenges at the same time: rapidly increasing production costs, shrinking markets, decreasing orders, large inventories... Increasing electricity prices during an economic recession has created even more pressure on businesses and people.

Vinatex Hong Linh Joint Stock Company (Hong Linh Town) is a large enterprise in Ha Tinh. Before April 2023, the enterprise had to pay 2 - 2.4 billion VND for electricity each month. From May 2023, the electricity price increased by 3%, meaning the unit had to spend 60 - 72 million VND more on electricity/month. Currently, the electricity price continues to increase by 4.5%, the enterprise incurs an additional 100 million VND in electricity/month. This cost is like a "rock" weighing heavily on the shoulders when in the first 9 months of 2023, the enterprise has lost up to 30 billion VND.

Electricity price increased by 4.5%, Vinatex Hong Linh Joint Stock Company incurred over 100 million VND in electricity bills/month.

For many months now, Ha Tinh Agricultural and Forestry Development Joint Stock Company (Phu Loc Commune, Can Loc) has been facing continuous losses as the price of live pigs has "gone downhill" while the price of animal feed and the cost of disease prevention in livestock have increased. According to Mr. Mai Khac Mai - Director of Ha Tinh Agricultural and Forestry Development Joint Stock Company: "Currently, the price of live pigs has dropped to 46,000 - 47,000 VND/kg. It turns out that for each commercial pig sold, the enterprise loses from 700,000 - 800,000 VND. With closed pig farming, consuming a large amount of electricity, in the past, each month, the unit paid over 400 million VND for electricity, but now each month it has to "bear" an additional 20 million VND. If the production and business situation does not improve, the enterprise will have a very difficult time".

If the electricity price increases by 4.5%, Ha Tinh Agriculture and Forestry Development Joint Stock Company will have to "bear" an additional 20 million VND each month.

For Xuan Thanh Aquaculture and Seafood Processing Cooperative (Nghi Xuan), commercial shrimp farming requires 24/7 electricity. Therefore, when hearing the news that electricity prices continue to increase, the head of the cooperative could not help but worry. "This crop, the cooperative raises 14 shrimp ponds, of which 7 are aerated 24/7, spending about 215 million VND on electricity per month. When the electricity price increases by 4.5%, each month we have to "increase" about 10 million VND" - Mr. Ho Quang Dung - Director of Xuan Thanh Aquaculture and Seafood Processing Cooperative said.

Aquaculture farmers incur many costs when electricity prices increase.

According to records, in the context of economic difficulties and declining income, many people in Ha Tinh are also having to "tighten their belts" in spending. Ms. Nguyen Thi Hai (Thach Linh ward, Ha Tinh city) worriedly said: "I am a freelancer with unstable income. Currently, consumer costs such as gas prices, gasoline prices, food prices and many other costs are increasing, so my family is struggling to make ends meet. At this time, if electricity prices continue to increase, freelancers with low incomes like us will have a harder time."

The economy has not yet recovered from the COVID-19 pandemic, the operations of many businesses are facing many difficulties, some businesses in Ha Tinh have even had to temporarily close, workers are unemployed. At the same time, the lives of a group of people are also more difficult when income has decreased, living costs are expensive. Therefore, the business community, cooperatives and people recommend that competent authorities need to study, carefully consider and have a suitable roadmap to increase electricity prices so as not to create more pressure on businesses, cooperatives and people in the context of many "surrounding" difficulties.

Phuc School

Source: https://baohatinh.vn/cong-nghiep/gia-dien-tang-doanh-nghiep-nguoi-dan-nong-mat/257117.htm