‘There has been no increase in electricity prices since July 1’

'There has been no increase in electricity prices since July 1' 3

Faced with the situation where the selling price of coal for electricity has increased by about 40% and the price of raw material oil for thermal power has also increased by about 30% since the beginning of the year, the Ministry of Industry and Trade has asked Vietnam Electricity Group (EVN) to recalculate costs.

Responding in the `Policy Dialogue` broadcast on VTV1 on the evening of June 26, Mr. Dinh Quang Tri, Deputy General Director of EVN affirmed that `there will definitely not be an increase in electricity prices on July 1`.

`It is necessary to take an overall and long-term view: we must gradually raise electricity prices to attract investment. To achieve that, there must be a consistent adjustment roadmap. The goal is not to bring it to regional parity, but to ensure that

Electricity prices must be adjusted to attract investment.

Answering the question of how much the increase will be, Mr. Tri said that EVN will calculate based on the group’s goal of ensuring enough electricity and financial balance, while profit is not the most important target of EVN.

Regarding the Government’s draft Decision regulating the retail electricity price schedule, which will apply separate electricity prices for the iron, steel and cement industries with an increase of about 2 – 16%, Mr. Pham Chi Cuong – Chairman of the Vietnam Steel Association

Agreeing with the opinion of the representative of the Electricity Group, Mr. Tran Viet Ngai, Chairman of the Vietnam Energy Association, said that current electricity prices are not reasonable to attract foreign investors.

Price adjustment is unavoidable, but Dr. Nguyen Duc Kien – Deputy Chairman of the National Assembly’s Economic Committee also commented that the electricity industry needs to create confidence for people to do business properly, and to shoulder difficulties.

`Total non-industry investment in the electricity industry only accounts for 2%, so whether the loss of 2 VND per 100 VND spent will affect investment or not, this issue has not been clearly explained by the electricity industry. In addition, it is still necessary to understand

Regarding the opinion that EVN has a monopoly on electricity prices so it can adjust regularly, Mr. Tri explained that electricity prices are directed by the State and EVN cannot decide.

Agreeing with this point of view, Dr. Tran Dinh Thien – Director of the Vietnam Institute of Economics emphasized that if we maintain subsidized electricity prices to compromise with the current distorted market, we will have to pay a big price.

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