Electricity price increase, adding pressure to people and businesses

Officially from May 10, the average retail electricity price was adjusted up by 4.8%, to 2,204.06 VND/kWh (excluding VAT). The increase in electricity prices has raised concerns about the cost of living for families, the price of goods and services has increased accordingly, putting great pressure on people and the business community.

With the new increase, according to calculations by Vietnam Electricity Group (EVN), the amount of electricity that households have to pay each month will increase from 4,550 VND to more than 65,050 VND depending on electricity consumption.

For poor households and social policy households, the Government still maintains a support level equivalent to the electricity consumption of 30kWh/household/month to reduce the cost burden.

However, for many households with high electricity usage, especially during hot months, total electricity costs will still increase significantly, putting pressure on monthly living expenses.

Ms. Nguyen Thi Thanh, Tich Son Ward (Vinh Yen) said: A family of four, the monthly electricity bill ranges from 600,000 - 700,000 VND. With the new price increase, although the number is not too large, but combined with other expenses and daily living expenses that are constantly increasing, life becomes more difficult. Every hot season, when the demand for electricity increases, the electricity price is adjusted, leading to a sharp increase in the electricity bill.

Not only directly affecting households, rising electricity prices also impact the economy in general, especially manufacturing enterprises. Electricity is one of the important and indispensable input factors for industries, food processing, transportation and consumer goods production. When electricity costs increase, businesses face the problem of balancing their budgets to maintain operations without increasing the prices of products and services.

The increase in electricity prices in the context of economic difficulties has affected people's lives and production of many businesses. Photo: Duc Chung

KGROUP Mechanical, Electrical, Refrigeration and Environment Company Limited, Binh Dinh Commune (Yen Lac) is one of the enterprises with large electricity consumption in the province. The company specializes in manufacturing and installing boiler systems, pressure equipment, industrial refrigeration systems as well as environmental solutions.

During its operations, the company uses a significant amount of electricity to maintain the operation of its machinery and production equipment. With the increase in electricity prices, this enterprise is facing the problem of balancing its budget to maintain operational efficiency without affecting production costs and product prices.

According to a representative of KGROUP, the increase in electricity prices has created great pressure on business operations, forcing the company to recalculate production costs and seek energy-saving solutions.

One of the solutions that KGROUP is implementing is investing in solar power systems to reduce dependence on grid power. In addition, the company is also optimizing operating processes, using energy-saving equipment and adjusting production times to limit electricity use during peak hours.

While rising electricity prices are inevitable, businesses need to adapt to maintain stable operations. To reduce the cost burden, businesses must find ways to adjust their operations, invest in new technologies, and take advantage of renewable energy sources.

However, for the transition to go smoothly, support from the regulatory agency is needed to help businesses adapt to the new electricity prices while still ensuring efficient operations.

Faced with rising electricity prices, many households and businesses have proactively sought energy-saving solutions to minimize negative impacts. Families have begun replacing old electrical equipment with energy-saving devices, taking advantage of natural light instead of using lamps, and adjusting their electricity usage habits. On the business side, small-scale production facility owners have also had to change their electricity usage habits to reduce costs.

Currently, many people want the State to take synchronous action to limit the "domino effect" - that is, the simultaneous increase in prices of goods and services following each adjustment in electricity prices.

Ms. Nguyen Thi Hang, owner of a restaurant in Vinh Yen city, said: Raw material prices have tended to increase slightly because suppliers are also affected by the increase in electricity costs. When electricity prices increase, the cost of using refrigerators, fans, and lights will all be higher...

To avoid the risk of price escalation, people and businesses both want the State to closely monitor and severely handle cases of unreasonable price increases.

In addition, the State also needs to have policies to support enterprises in technology transformation, encourage investment in energy-saving solutions such as renewable energy to reduce the burden of production costs. At the same time, it is necessary to continue promoting propaganda on energy-saving use in the community to raise awareness and responsibility of each organization and individual.

Source: http://baovinhphuc.com.vn/Multimedia/Images/Id/128816/Gia-dien-tang-them-ap-luc-cho-nguoi-dan-va-doanh-nghiep