Electricity price increase - People worry about spending, businesses worry about costs

Accordingly, the average electricity price will increase to more than VND2,200/kWh. This is the second electricity price adjustment since 2023, bringing the total increase in electricity prices in the past 3 years to more than 17%. The impact of the electricity price adjustment on households using electricity for daily life following the 6-step ladder price list and consuming at a normal level will increase by about VND4,550-65,050/household/month.

People are worried about rising electricity prices, so they should limit the use of unnecessary devices.

In Viet Tri City, many households have clearly felt the pressure of rising electricity bills. Ms. Nguyen Thi Phuong, Gia Cam Ward, said that her family of five previously only had to spend about 600,000 - 700,000 VND on electricity each month. But in the past two months, the bill has jumped to more than 1 million VND due to the increased demand for air conditioners and refrigerators.

“With a 4.8% increase, it doesn't seem like much, but combined with the increase in fixed expenses such as rent and water bills, we have to cut back on spending on food and shopping to cover the electricity bill,” Ms. Phuong shared.

Similarly, Mr. Nguyen Anh Tuan in Thanh Mieu ward is also worried. His family spends nearly 1 million VND/month on electricity, and this number will certainly increase in the coming summer months. According to the current increase, if using more than 400kWh of electricity as usual, his family will have to pay an additional 65,050 VND/month. "If the electricity price increases like that, it will actually be higher, because electricity is calculated based on peak and off-peak hours. Not to mention, in the hot season, fans and air conditioners must be used continuously, making it difficult to save money."

According to statistics from Vietnam Electricity Group (EVN), the increase in electricity prices will have different impacts depending on the amount of electricity consumed. For the group of customers using 101-200 kWh (accounting for 32.79% of households), the electricity bill will increase by about 20,150 VND/month. For the group using 201-300 kWh (accounting for 19.33%), it will increase by about 33,950 VND/month; the group using 301-400 kWh (accounting for 9.89%) will increase by 49,250 VND/month; and the group using over 400 kWh (13.45%) will have to pay an additional 65,050 VND/month. However, these figures are only estimates under stable electricity usage conditions, not taking into account the peak hot season when cooling equipment operates continuously.

Not only the people, but also small businesses are “restless”. Ms. Chu Thi Mai, owner of a grocery store on Chau Phong Street, Tan Dan Ward (Viet Tri City), said: “My store has 4 refrigerators running continuously day and night, not to mention the air conditioner and lighting system. Every month, I have to spend more than 5 million VND on electricity, now the price increase will affect revenue”.

According to Ms. Mai, saving electricity is almost impossible because the devices are used for daily business activities. “If we reduce usage, the goods will spoil and cannot be kept cold. Electricity prices increase while revenue does not increase, or even decrease because people’s purchasing power is limited, it is really difficult,” she added.

Not only people, small businesses are also "restless".

While households and small businesses are facing difficulties, manufacturing enterprises are under even more pressure. Mr. Nguyen Van Dong - Director of Hai Minh Plastic Company Limited, Phu Ninh District shared: "We consume about 90-250 million VND of electricity each month, depending on the number of orders. With a 4.8% increase, the electricity bill can increase by several million to several tens of million VND each month."

According to Mr. Dong, in the context that businesses are facing rising input costs, pressure from US tariff policies, unstable transportation and raw material costs, increasing electricity prices is no different from a "double blow" that reduces competitiveness. "We are producing export goods, the tariff pressure from the US market is already great, now with the increase in electricity prices, it will be very difficult to maintain stable prices.

If production costs increase without increasing selling prices, businesses will be forced to cut profits, even suffer losses, to maintain market share. In addition, I am also concerned that when the cost of living increases, workers will also demand a salary increase, which forces businesses to consider other expenses while the purchasing power of the domestic market is still weak," said Mr. Dong.

To limit the increase in electricity bills, people and businesses need to pay more attention to using electricity economically and reasonably. Electrical equipment should be turned off when not in use, prioritizing use during off-peak hours. Businesses also need to recalculate production processes and restructure operations to optimize energy costs.

EVN Phu Tho staff promote energy saving to people.

On the management side, it is necessary to soon have measures to control input costs, increase publicity and transparency in calculating electricity prices, and at the same time support people through electricity saving programs and subsidies for poor and near-poor households.

In the current period, adjusting electricity prices is necessary to ensure financial balance for the electricity sector, but it needs to be done in a planned manner, in accordance with the payment capacity of people and businesses. Otherwise, the increase in electricity prices will not only be a number on the bill, but also a burden on the entire economy .

Quoc An

Source: https://baophutho.vn/gia-dien-tang-nguoi-dan-lo-chi-tieu-doanh-nghiep-lo-chi-phi-232875.htm