Proposal to increase electricity price is just an idea
Speaking to Lao Dong on January 3, Mr. Nguyen Anh Tuan - General Director of EVN said that the increase in electricity prices in 2024 is just an idea. How the price will be increased and the roadmap will depend on the calculations of competent authorities - based on EVN's financial reports.
“Whether to increase electricity prices or not must be carefully and objectively researched, based on assessments of the impacts on the economy, society and people’s lives. However, we are also making efforts to implement solutions to move towards implementing electricity prices according to market mechanisms,” said Mr. Tuan.
Mr. Dao Nhat Dinh (Vietnam Energy Magazine) said that the plan to increase electricity prices in 2024 to help EVN balance its finances is appropriate. Because if EVN's "health" is weak, it will affect attracting investment in the electricity industry.
“Electricity is a special type of energy, a strategic commodity whose price is controlled by the State, an important input cost, used in most economic sectors and for household consumption. Lack of electricity will lead to stagnant production and disrupt people's lives.
“If electricity prices are not increased at a level that can help EVN balance its finances, it will affect the preservation of state capital at EVN, the ability to provide enough electricity for the economy, and national energy security in the context of climate change and the economy's increasing demand for electricity,” said Mr. Dao Nhat Dinh.
According to Mr. Dao Nhat Dinh, the electricity price increase should be under 5%, under the authority of EVN. This increase is enough for EVN to resolve the accumulated losses, while avoiding widespread impacts on the people.
Regarding the timing of the electricity price increase, Mr. Dao Nhat Dinh said that the electricity price should absolutely not be increased during the hot season (from May to July) to avoid shocking increases in electricity bills, causing frustration for customers. He suggested that the electricity price should be increased in October this year.
Be very careful
Meanwhile, speaking with Lao Dong, Dr. Ngo Duc Lam - former Deputy Director of the Institute of Energy (Ministry of Industry and Trade) said that we need to be extremely cautious and calculate carefully: "We need to see if the economy and people can endure the third increase in electricity prices or not?".
According to Mr. Ngo Duc Lam, before thinking about increasing electricity prices, it is necessary to consider whether the management of input fuel prices for electricity production is appropriate.
“In the structure of power sources, coal-fired thermal power still accounts for a large proportion, while in recent times, coal prices have continuously increased, affecting the cost of electricity production. Therefore, it is necessary to review the structure of power components,” said Mr. Lam.
According to him, previously, when the Power Plan VIII was established, coal-fired power accounted for more than 30% of the total installed power capacity, however, coal-fired power output was up to more than 40%. Before and during the planning period, coal prices remained low at about 7 cents (except for hydropower, the lowest coal-fired power price among all power sources in the entire system).
However, everything has changed, now the input coal price has skyrocketed, especially the high price of imported coal, causing the cost of electricity production to increase accordingly. Therefore, it is necessary to recalculate the input structure of each type of power source to suit the reality. Because the current structure is not suitable for the time of building the Power Plan VIII, it needs to be adjusted.
“Electricity is the country’s infrastructure, having a profound impact on the economy. When electricity prices increase, the cost of all goods also increases. Therefore, the Government needs to carefully consider whether to increase electricity prices in 2024. To evaluate, it is not only based on the proposal of EVN or the State Capital Management Committee at Enterprises but also requires calculations from the Ministry of Finance and the Ministry of Planning and Investment,” said Mr. Ngo Duc Lam.
Unable to balance finances, EVN staff salaries are very low
At the summary conference on January 2, EVN Chairman Dang Hoang An said that due to the inability to balance finances, recently, the jobs and lives of officials, employees and workers in the electricity industry have been declining.
“The Board of Members, the Board of Directors and I are very worried about what the lives of EVN’s staff, workers and employees will be like in 2024, the 70th anniversary of the Group’s tradition. The project management boards, school blocks, and service blocks of the corporations have very low salaries, and many low-level officials of the Group do not have enough to live on,” said the Chairman of EVN.
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