Increasing electricity prices to compensate for losses: Transparency and responsibility needed

The Ministry of Industry and Trade's proposal to include the loss of nearly VND45,000 billion of Vietnam Electricity Group (accumulated loss in the period 2022-2023, up to the end of 2024) in the average retail electricity price has recently received public attention. Many people disagree with this proposal and believe that EVN needs to clarify the cause of the loss.

The Vietnam Association for Consumer Protection believes that it is necessary to study the impact on consumers and businesses when calculating old costs into future electricity prices. Illustrative photo

People disagree with the proposal of the Ministry of Industry and Trade to compensate for electricity price losses in the average electricity price, which is an understandable and legitimate reaction. This proposal is essentially a way to distribute the financial burden from the loss-making business of the Electricity industry to all consumers.

The biggest reason why people object is that they will have to bear the additional cost. Adding the loss to the average electricity price means that the electricity price will increase, no matter how small. In the context of economic difficulties, inflation and affected people's income, any price increase, especially for an essential item like electricity, creates additional financial pressure. People say that they are already paying high electricity prices, and now they have to bear the loss of businesses.

Another problem is the lack of transparency. People question the source of the losses. Are they the result of poor management, ill-conceived investments, or unreasonable expenses? When people have to pay for these losses, they feel it is unfair.

They believe that if a business loses money due to poor management, the responsibility must belong to the business and the burden cannot be shifted to consumers. The proposal of the Ministry of Industry and Trade is considered a “bailout” for businesses, with the people being the ones “paying the price”.

Public opinion believes that the Ministry of Industry and Trade should have sought to improve operational efficiency, make costs transparent, and find more fundamental solutions instead of choosing the easiest solution of increasing electricity prices. Choosing to compensate for losses by increasing electricity prices is considered a "blame-blaming" and irresponsible solution that does not address the root of the problem.

People were reassured that electricity prices would be adjusted appropriately, based on market factors. However, the proposal to compensate for losses shows administrative intervention, not following market rules, making people feel distrustful. They are concerned that this could be a precedent for other price increases, when businesses continue to operate at a loss and consumers will be the ones to bear the brunt.

To create consensus in society, it is important to ensure rationality and transparency. The Ministry of Industry and Trade needs to clarify so that the public understands the legal provisions on rights and principles of electricity price management. The Electricity Industry must implement modern management solutions, optimize costs, improve cost management efficiency, investment efficiency... and soon "step out" into the competitive retail electricity market.

Source: https://baothainguyen.vn/tin-moi/202509/tang-gia-dien-de-bu-lo-can-su-minh-bach-va-trach-nhiem-3d642ed/