EVN deputy CEO Nguyen Xuan Nam said at a press conference on May 4 that the electricity price increase will increase EVN’s revenue in the remaining eight months of the year by VND8 trillion, thus minimizing its financial difficulties.

Asked about the possible impact of the electricity price increase on the consumer price index (CPI), Nam cited an estimate of the General Statistics Office (GSO) as saying that if the electricity price increased by 5 percent, the CPI would increase by 0.17 percent, but if the electricity price increases by 3 percent as decided, the impact will be much smaller.

“Raising electricity prices is one of the effective solutions to ease financial difficulties for EVN. Besides, EVN itself has to try every possible way to cut expenses. If it saved 10 percent of recurrent expenses last year, it will have to cut 15 percent this year. Labor costs and wages will also be cut,” Nam said.

Not only cutting input costs, EVN will also have to implement power-saving solutions as per the PM’s instructions. The group will have to optimize the mobilization of power sources with low production costs.

EVN will also work with fuel suppliers, including gas and coal suppliers, to discuss solutions to share difficulties with EVN by lowering coal and gas selling prices to minimize input costs. 

Negotiations between EVN and renewable power investors will be conducted to harmonize the benefits. 

“With overall solutions, EVN hopes it can minimize financial difficulties. When the difficulties are mitigated, the problems in payments to suppliers will be solved,” Nam said.

Mentioning supply of coal for electricity generation, EVN’s officials said that EVN has been working with the Vietnam Coal and Mineral Industries Group (Vinacoal) and Dong Bac Corporation to discuss solutions on providing coal for electricity generation.

The power plants using mixed coal are selling electricity to EVN at VND2,400 per kwh, while if using coal imports, the price would be up VND4,000 per kwh. EVN has to make every effort to ensure sufficient supply of electricity for the country.

Regarding the possible influences of electricity prices to daily activities, Vo Quang Lam, EVN’s deputy CEO said that a household using 50 kwh a month will have to pay VND2,500 more a month. A household using 100 kwh will have to pay VND5,100 more and a household using 200 kwh will have to pay VND11,100.

Luong Bang