Government urges adjustment of average retail electricity price

Electricity workers inspect power transmission lines. Photo: EVN

This content was stated by the Government in the Resolution of the regular meeting in March. The plan to adjust the average retail electricity price is noted to be consistent with the new average retail electricity price framework, and the impact is carefully assessed to submit to the competent authority for consideration.

This adjustment will be the basis for increasing retail electricity prices for households and production. The above moves take place in the context of Vietnam Electricity Group (EVN) recording a record loss of nearly VND 36,300 billion in 2022 from electricity production, if deducting other financial income, the loss is reduced to VND 26,236 billion.

Previously, at the end of March, the Ministry of Industry and Trade announced that the cost of electricity production and business last year increased by 9.27% ​​compared to 2021 (according to Decision 24, the adjustment of average retail prices is under the authority of the Ministry of Industry and Trade). With the average retail electricity price remaining at VND 1,864.44 per kWh from March 2019 to present, EVN has lost nearly VND 168 per kWh of electricity sold.

The consequences of the skyrocketing input prices while the selling and output prices are slow to adjust - have been reported by EVN to the Ministry of Industry and Trade and the State Capital Management Committee at Enterprises. Accordingly, the group said it would face difficulties in balancing cash flow to pay power generation units, mobilizing capital, and balancing capital. This will affect the adequate supply of electricity, investment, and repair and maintenance of power projects.

According to calculations by Vietnam Electricity Group, if the average retail electricity price remains unchanged this year, by June, the parent company - EVN will be short more than 4,400 billion VND and by December, it will be negative nearly 27,800 billion VND.

Deputy Minister of Industry and Trade Do Thang Hai said that the pressure to increase electricity prices is very large and the Ministry of Industry and Trade is submitting a plan to increase retail prices.

In addition to electricity prices, the Government assigned the Ministry to ensure domestic gasoline supply in all situations and promptly submit a Decree amending and supplementing Decree 95/2021 and Decree 83/2014 on gasoline trading.

In the Resolution, the Government also requested agencies at all levels to support businesses and people to reduce cost pressure and promote production. The Ministry of Finance shall submit to competent authorities policies on tax exemption and extension, land rent and land use fees in 2023, including a proposal to reduce value-added tax, before April 15.

The State Bank operates a flexible monetary policy, appropriate exchange rates and urges commercial banks to reduce deposit and lending interest rates to increase access to capital for businesses and people.

Monetary authorities are urged to promptly develop a plan to restructure Saigon Commercial Bank (SCB) and restructure commercial banks under special control according to the Politburo's conclusion.

Regarding the real estate market, the Ministry of Construction is assigned to localities and ministries to speed up the removal of specific real estate projects.

The Ministry of Construction and the State Bank will soon issue a list of subjects, conditions, and criteria to benefit from the VND120,000 billion credit loan package for social housing and workers' housing, ensuring transparency and publicity.

According to VnExpress