Adjust electricity price every 3 months to avoid jerks

In response to questions about the feasibility of the proposal to adjust retail electricity prices every 3 months and its impact on the economy and consumers, at the regular Government press conference this afternoon (August 5), Deputy Minister of Industry and Trade Do Thang Hai said that this is consistent with the provisions in Decision 24/2017 of the Prime Minister.

According to Decision No. 24/2017, EVN has the authority to adjust the average retail electricity price at a level below 5% (specifically from 3 to below 5%). This regulation aims to ensure the level of autonomy of enterprises within the price framework prescribed by the Government .

Regarding the electricity price adjustment cycle, due to the influence of world geopolitics , world fuel prices have increased since the end of the first quarter of 2022. The cost of fuel that Vietnam must import to produce electricity increases according to world prices, causing EVN's electricity purchase cost to increase, affecting the financial balance and cash flow of the group.

Deputy Minister of Industry and Trade Do Thang Hai. (Photo: chinhphu.vn).

According to Mr. Hai, EVN has proposed to increase electricity prices in 2022 and 2023 to ensure cash flow and financial situation. With fluctuations in input parameters (mainly fuel prices), the calculation results show that electricity prices need to be adjusted to increase at a relatively high level to ensure cash flow for EVN.

" In the process of proposing to consider EVN's proposal to adjust electricity prices in 2022 as well as 2023, the Government Standing Committee and the Prime Minister have expressed their opinions that it is necessary to study and adjust electricity prices according to a suitable step-by-step roadmap, avoiding jerky management ," Mr. Hai emphasized.

According to Mr. Hai, on the basis of studying and amending Decision 24 to avoid causing major impacts on the macro economy, business production and people's lives, implementing the direction of the Government Standing Committee and the Prime Minister, on the basis of EVN's proposal, the Ministry of Industry and Trade has researched and in the draft proposed to shorten the electricity price adjustment cycle to 3 months/time.

" This adjustment is consistent with current regulations because Decision 24 stipulates that EVN must report and calculate updated electricity prices quarterly. The new proposal is completely consistent with this regulation ," said Mr. Hai.

However, electricity price is a "sensitive" commodity that directly affects production and business, people's lives as well as macroeconomic indicators, so the implementation of electricity price adjustment with the level, timing... must be reported to the Prime Minister for direction to ensure macroeconomic management, political stability and socio-economic stability.

Regarding the fact that the Ministry of Industry and Trade has not yet developed a two-component electricity price list (capacity and electricity), Mr. Hai said that this agency proposed to improve the retail electricity price structure in two phases.

Currently, electricity prices for production and business customers are adjusted to avoid causing too much fluctuation when restructuring the retail price list.

Tourist accommodation establishments will have their retail electricity prices applied at production prices, instead of business prices.

Electricity prices according to voltage levels (high voltage, medium voltage and low voltage) for production, business, administrative and tourism accommodation customers... are combined to suit the actual development of the power grid at power corporations.

In addition, the electricity price for business and administrative services is kept unchanged and the retail electricity price for customers of electric vehicle charging stations and posts is supplemented according to the principle of accurately and fully reflecting the production and business costs of the electricity industry.

The two-component electricity price will be calculated for testing for customers using electricity produced at voltage level of 110 kV or higher when technical conditions allow, suitable for each stage of economic recovery.

The roadmap and specific proposals will be monitored, updated and assessed by the Ministry of Industry and Trade and EVN for their impact on production and people's lives, and reported to the Prime Minister for decision.

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