EVN workers perform checks on a transmission grid in the central province of Quang Tri (Photo: VNA) The suggested price adjustment aims to provide EVN with a sustainable revenuestream for its power plants' operation and more accurately reflect the group'sinput costs.
During a recent meeting of the Price Steering Committee, Deputy Minister ofIndustry and Trade Phan Thi Thang said a comprehensive review of prices wasrequired to ensure alignment with the dynamic input parameters and securefunding sources for power plant investors.
"The MoIT will provide guidance to EVN to operate the electricity pricingplan in compliance with regulations." said a statement released by theministry.
In an earlier developments, Deputy Prime Minister Le Minh Khai called for moreproactive preparation and strategic planning among ministries and sectors inline with the market roadmap for adjusting the prices of essential goods,including electricity.
He stressed the importance of timely calculations and adjustments in responseto market conditions to achieve the goal of controlling inflation.
An EVN's executive meeting earlier this year also highlighted the need foradjusting electricity prices. Nguyen Hoang Anh, chairman of the State CapitalManagement Committee (CMSC), warned that failure to increase electricity pricescould exacerbate the group's current loss of 17 trillion VND (690 million USD).
Despite two adjustments to the average retail electricity prices last year, EVNcontinued to report losses from electricity production and business for thesecond consecutive year. By the end of 2023, the group reported a consolidatedpre-tax loss of approximately 17 trillion VND, 9 trillion VND lower thanthe figure of the previous year.
EVN attributed the significant loss to selling prices remaining lower than thegroup's costs. Calculations by the group indicated that the total average costof electricity generation, transmission, and distribution processes was 2,092.78VND per kWh, while the average selling price was 1,950.32 VND per kWh,resulting in a loss of 142.5 VND for every kWh sold.
While adjusting electricity prices is anticipated to have alimited impact on the Government's CPI target of below 4%, concerns were raisedby economist Dr. Nguyễn Đức Độ about potential difficulties forelectricity-intensive businesses and a segment of the population.
He emphasised the need for the State to carefully calculate thequantity and timing of adjustments to balance the interests of businesses, thepublic, and the State.
Prof. Dr. Dinh Trong Thinh from the National Academy of PublicAdministration stressed the importance of transparency in EVN's pricing andbusiness operation to avoid negatively impacting public sentiment.
He called for greater efforts in communication to clarify any concerns amongthe general public about the consistently upward trajectory of electricityprices in recent years.
Thinh said that electricity prices should be subject to market mechanisms,rising and falling in response to changes in the prices of oil, gas, and coal.This approach, according to him, would help normalise expectations among thepublic and prevent significant disruptions with each adjustment./.
VNA
