Businesses prepare plans to respond to electricity price adjustments

This electricity price increase has been predicted by many businesses and they have prepared plans to cope with the impact.

Production and business activities at Cua Ong Coal Selection Company - TKV. Photo: Quoc Khanh/VNA

From May 10, each kWh of electricity will cost more than VND2,204 according to the decision of Vietnam Electricity Group (EVN). Thus, the average retail price of electricity will increase from VND2,103.11 to VND2,204.0655/kWh (excluding VAT), equivalent to an increase of 4.8%. This increase is similar to that in October 2024. This price increase has been predicted by many businesses and they have prepared response plans for the impact.

According to the representative of the Vietnam National Coal and Mineral Industries Group (TKV), increasing electricity prices is an inevitable rule to ensure energy security; at the same time, ensuring financial indicators for the electricity industry to operate sustainably. Increasing prices will help people use electricity more responsibly. When electricity prices increase, production facilities will have to restructure costs, optimize production lines to operate more economically; at the same time, it will also accelerate the transition to self-consumed renewable energy forms such as rooftop solar power.

The coal industry is a large consumer of electricity for coal mining production as production is increasingly going downhill and using many modern and advanced technologies. Although it is affected by many other input costs, increasing electricity prices is considered inevitable. This is within the plan and the enterprise has also taken into account the increase in electricity prices. Although it has partly self-sufficient electricity production, the amount of electricity consumed by the enterprise is still very large. Therefore, the enterprise will calculate to restructure production, optimize to reduce costs. At the same time, implement more cost reduction, use electricity more effectively.

Reflecting the current situation, the Vietnam Supporting Industry Association said that up to now, there have been no comments from member enterprises. However, regarding the increase in electricity prices, most units always develop response plans and self-adjust production and business accordingly. However, currently, it is the recovery phase of the majority of production and business enterprises; it is understood that enterprises have not yet escaped the difficulties after the incidents experienced by the market, due to competitive pressure or the impacts of the geopolitical economic crisis... Therefore, the increase in electricity prices needs to have a suitable roadmap or choose a time to avoid falling into the peak period of electricity use as it is now.

According to Mr. Nguyen Van Ket, Director of SKD Vietnam Precision Mechanical Company, the 4.8% increase in electricity prices will certainly affect businesses, but will not have too much impact. Electricity prices currently account for about 20 - 30% of the cost structure of finished products. "When electricity prices increase, the impact cost is only about 5% and this is acceptable. However, we cannot be subjective, businesses themselves must also change their production processes, make more efforts to improve production technology, thereby saving electricity," said Mr. Ket.

From a research perspective, Associate Professor, Dr. Ngo Tri Long, former Director of the Institute for Price Market Research ( Ministry of Finance ) analyzed: Adjusting electricity prices is necessary. Businesses and people need to thoroughly implement electricity saving measures. The electricity industry implements measures to reduce production and business costs, such as reducing regular costs, repair costs, optimizing the operation of the power system, maximizing low-cost power plants, and mobilizing low-cost electricity sources.

In addition, state management agencies must implement strict price control measures to avoid the phenomenon of "following the flow" in increasing electricity prices. In particular, communication must ensure effective and clear information about the Government 's directives. In addition, there are support policies for poor households and policy households.

“Any adjustment to electricity prices, no matter how small, needs to be placed in the overall balance between market goals, the affordability of people and businesses, and the requirements of energy transition”. Therefore, a fair, transparent, and effective energy strategy is needed, along with publicizing the electricity price structure and input costs by type (hydropower, coal, gas, renewable energy, etc.) to facilitate social supervision.

In addition, it is necessary to accelerate the roadmap for a competitive electricity market, especially the wholesale market and towards retail, to increase transparency and reduce monopoly; develop transmission and storage infrastructure and prioritize investment in domestic renewable electricity, especially offshore wind power, small hydropower and rooftop solar power combined with storage, Expert Ngo Tri Long recommended.

According to VNA

Source: https://doanhnghiepvn.vn/doanh-nhan/doanh-nghiep-san-sang-cac-phuong-an-ung-pho-voi-dieu-chinh-gia-dien/20250512114614133