Dr Le Dang Doanh, an economist, believes that an independent council should be established to oversee the electrical business

DNHN - Dr Le Dang Doanh, former head of the Central Institute for Economic Management (CIEM), explained that this is since the story of power costs has always garnered public attention due to its direct influence on people's lives and enterprise business.

Dr Le Dang Doanh
Dr Le Dang Doanh.

"Currently, popular perception holds that EVN is a monopolistic firm that is not subject to any oversight." The Ministry of Industry and Trade should establish an impartial council to help monitor and react to requests from individuals and companies about energy pricing adjustments and electricity industry business operations. This is also a very healthy necessity to enable EVN to flourish and get public acceptance," Mr Doanh remarked.

Concerning the current electricity price, Mr Doanh stated that the report shows that EVN is suffering a significant loss as a result of the sudden increase in the cost of input fuels for power generation (such as coal, oil, and gas) in the country and around the world since the beginning of the year. EVN's power generation expenses are quite high. As a result, an adjustment in power pricing is both necessary and appropriate.

How effective is the price-adjusting mechanism?

In many nations, the power price is modified quite flexibly, with the night price being different from the daytime price to encourage nighttime electricity usage and reduce grid strain. But the question is how Vietnamese people would adjust to this system after years of using low-cost stabilized power.

"I believe there should be a path, rather than an immediate administrative decision." There should be a psychological adjustment period so that consumers and companies can accept it, and manufacturing firms may actively assess input costs while still having time to create technology. Simultaneously, public opinion should be extensively solicited, as power prices may have a significant influence on people's output and consumption. "How to change to fit enterprises and individuals in the current scenario requires considerable study," Mr Doanh remarked.

The Ministry of Industry and Trade is seeking feedback on the Prime Minister's draft Decision governing the method for adjusting the average retail price of electricity. One piece of information that has gotten a lot of attention is that the Power of Vietnam (EVN) may opt to raise the retail price of electricity if the average retail price of electricity rises from 1% to less than 5%. Furthermore, the draft states that if the input parameters change, leading the average retail price of electricity to fall below the present average retail price, the average retail price of electricity would be reduced. When the input parameters change, causing the average retail price of electricity to rise by 1% or more above the existing average retail price, the average retail price of electricity is increased. When input parameters rise by 3%, the new electricity price will increase, as opposed to the process for changing retail power rates in Decision 24/2017.

 Bich Tram

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