return icon Vietnamnet.vn

Ministry considering EVN’s proposal for electricity price hikes

The Ministry of Industry and Trade is reviewing Vietnam Electricity's (EVN) proposal to increase electricity prices as rising input cost was weighing on the largest power company with record loss anticipated for this year.
Workers of Vietnam Electricity checking a transmission system. Electricity prices are under significant pressure to increase after three years of remaining the same. — VNA/VNS Photo

Deputy Minister of Industry and Trade Do Thang Hai said on the sidelines of the Government's November meeting on Thursday that prices of input were rising in both domestic and global markets, which were certainly affecting electricity production prices.

Hai said that according to the EVN's report, the company anticipated a record loss of more than VND31 billion this year despite efforts to reduce costs through repairing, recurrent expenses and optimising operation systems.

Any decisions must comply with the Prime Minister's Decision 24/2017/QĐ-TTg about the mechanism for adjustment of average retail electricity price.

EVN estimated a loss of more than VND15.7 billion in the first ten months of this year and VND31.36 billion for the full year due to rising input costs from rising coal, oil and gas prices.

While the global fuel prices had not shown any signs of falling to the average level of 2021 this year, the exchange rate kept increasing, and the proportion of cheap power sources such as hydroelectricity decreased. Therefore, EVN was still under pressure to raise electricity selling prices to compensate for the loss.

The current average electricity retail price was VND1,864.44 per kWh (excluded VAT) which was maintained from March 2019 to control inflation and support production and business.

According to statistics on Global Petrol Prices, Vietnam had a low average electricity price compared to other countries in ASEAN. The average retail price of Vietnam was higher than only Laos and Malaysia, and lower than Indonesia, Thailand, the Philippines and Singapore.

Economic expert Dinh Trong Thinh said that increasing electricity prices was a relatively urgent need for EVN. "When and how to increase the electricity prices were problems for the management agency to harmonise the interests between the electricity users and the generators, however."

Thinh stressed that any adjustment in electricity prices must be put into careful consideration in the context of inflationary risk, and many enterprises were in difficulty due to rising input costs and strong reductions in orders.

It was necessary to ensure transparency in the costs which constituted electricity prices, Thinh stressed.

According to Ha Dang Son, director of the Centre for Energy and Green Growth Research, if electricity prices were kept low for too long, investors would be hesitant to invest in the power sector.

He said that electricity prices should be adjusted to reasonable levels to ensure economic development while encouraging private investments to ensure national energy security.

Financial expert Ngo Tri Long said that electricity prices being held back too long was a problem that needed to be resolved soon. Otherwise, it would lead to a power supply shortage as happened to the petrol market recently. The costs constituting the prices of necessary goods must be calculated correctly, sufficiently, and reasonably to prevent market distortions and encourage investment. 

Source: Vietnam News

MORE NEWS

Vietnam among top 10 best places to go for budget honeymoon

The nation has been listed among the top 10 best places to go for a budget honeymoon in 2023 by prestigious global travel website Lonely Planet.

Vietnam’s industrial production to rise 6.6% in 2023: S&P Global

Vietnam is predicted to record a rise of 6.6% in industrial production in 2023, according to S&P Global Market Intelligence.

Vietnamese athletes to receive 1 mln USD for Paris Olympic gold

Vietnamese athletes competing in the Paris 2024 Summer Olympics, scheduled for July 26 to August 11, 2024, will receive 1 million USD in bonus for each gold medal; 500,000 USD for silver and 200,000 for bronze.

VIETNAM NEWS HEADLINES FEBRUARY 1/2023

Party chief’s book on corruption fight to make debut

Google Doodle honours first female Vietnamese newspaper editor Suong Nguyet Anh

The world’s most popular search engine Google has paid tribute to Suong Nguyet Anh, the first female editor of the nation’s first women’s newspaper by posting a drawing of her on its homepage on February 1.

Banh Cuon among world top 10 dishes visitors should try in 2023

Australian travel magazine Traveller has listed Banh Cuon, Vietnamese steamed rice rolls, among the top 10 best meals from around the world that visitors should try in 2023.

Party chief directs key tasks for new year

Party Secretary Nguyen Phu Trong on Tuesday chaired a meeting of the Secretariat of the Communist Party of Vietnam (CPV) Central Committee, mapping out key tasks for the new year.

VIETNAM BUSINESS NEWS FEBRUARY 1/2023

Domestic market to drive tourism recovery in 2023: insider

Some big companies made profits in 2022, but others incurred losses

While Duc Giang Chemicals and Binh Son Refining and Petrochemical have reported big profits for Q4 and the year 2022, Vietnam Airlines and leading steel manufacturer Hoa Phat saw big losses for the year.

Vietnamese couple help German bicyclist in distress

Trung and Nhung, a Vietnamese couple, on the way to travel across Vietnam on Tet holiday, saw a foreigner who was facing troubles because of strong winds in Ninh Thuan.

Vietnam develops green agriculture to increase exports to EU

Vietnam is paying attention to mobilising resources to invest in developing green agriculture with an aim to raising the market share of its agricultural exports to the European Union.

Vietnamese team comes first at Southeast Asian Fencing Championship

Vietnam secured the first position at the 2023 Southeast Asian Fencing Championship which has taken place recently in Malaysia.

2023 - Time for Edtech to thrive in Vietnam

Experts are positive about the development of Vietnam’s education technology (Edtech) market in 2023 if local Edtech companies can overcome post-pandemic challenges.

UK imports from Vietnam in 2022 put at over US$6 billion

United Kingdom (UK) imports from Vietnam amounted to US$6.06 billion last year, rising by 5.2% over 2021, according to the General Department of Vietnam Customs.

Five more registration officials in Hanoi prosecuted for soliciting bribes

Police of Hanoi’s Thuong Tin District has started legal proceedings against five officials at 2915D Registration Centre for taking bribes.
back_to_top