EVN engineers repair power lines (Photo courtesy of EVN) Hanoi (VNS/VNA) -Electricity retail prices should have been raised by 9.26 percent instead of8.36 percent if Vietnam Electricity (EVN) had correctly calculated the 3.26trillion VND foreign exchange rate difference in 2018 into its power productioncosts.
The information was released by the Ministry ofIndustry and Trade (MoIT) in a report to Prime Minister Nguyen Xuan Phuc.
Electricity tariffs were raised by 8.36 percentto 1,864 VND (8.03 US cents) on March 20. However, many households havecomplained about sudden increases in their electricity bills, which doubled ortripled in April compared with previous months.
In response, the PM has instructed the MoIT tocheck on the increase as well as its impacts on the consumer priceindex (CPI).
In the report, the MoIT said the powertariff increase had been submitted to the Government for approval.
It said increasing input prices of coaland gas, along with the foreign exchange rate difference, made electricityproduction costs increase by 20 trillion VND (almost 855.5 million USD).Of which, coal added more than 7.33 trillion VND while oil and gas added 7.39trillion VND.
The ministry also said the current differentpricing scheme for households and businesses was also being applied around theworld. However, the scheme would be recalculated to ensure fairness amonghouseholds.
The MoIT also added that EVN had followed thecorrect procedures in calculating power bills.
The group received and answered more than 71,500requirements from customers relating to electricity bills in April.
At the 7th session of the 14th National Assembly(NA) which opened in Hanoi on May 20, the NA asked the Government toreport on recent increase of electricity and petrol prices and theireffects on CPI and socio-economic development.
Deputy Prime Minister Truong Hoa Binh saidauthorities had been investigating and clarifying the increases to ensuretransparency.
EVN Chairman Duong Quang Thanh said the groupwas building a pilot plan for the competitive electricity retail marketit would submit to the MoIT for approval in July.
Thanh said they had been working to equitise threepower generation corporations and developing a National Load DispatchCentre (NLDC). They would also privatise its retail power service for theelectricity retail market by 2021.
“EVN completed its plan to turn NLDC into a onemember limited company and will submit it to the PM for approval,” hesaid.
He added that EVN would complete a plan toseparate power distribution and retail toward the establishment ofa competitive electricity retail market.
In addition, it would invest in powermarket infrastructure to accelerate the market’s development.
On May 18, power production topped 36,000MW forthe first time, according to EVN’s National Load Dispatch Center(NLDC). Consumption on the same day reached a record-high 756.9million kWh.
EVN said consumption could go up to 800 millionkWh per day during May and June as the weather gets hotter. Summer heatintensifies while water shortage constrains power production.
Last month, Vietnam broke its national hightemperature record as the mercury hit 43.4 degrees Celsius in Ha Tinh province,according to French meteorological agency Meteo France. Weather expertshave warned that Vietnam should brace for more heat waves thissummer.
Meanwhile, electricity production is facingchallenges as reservoirs in the central and southern regions are low on water.
Despite these challenges, EVN has guaranteedthat it will supply enough electricity this year.-VNS/VNA
The information was released by the Ministry ofIndustry and Trade (MoIT) in a report to Prime Minister Nguyen Xuan Phuc.
Electricity tariffs were raised by 8.36 percentto 1,864 VND (8.03 US cents) on March 20. However, many households havecomplained about sudden increases in their electricity bills, which doubled ortripled in April compared with previous months.
In response, the PM has instructed the MoIT tocheck on the increase as well as its impacts on the consumer priceindex (CPI).
In the report, the MoIT said the powertariff increase had been submitted to the Government for approval.
It said increasing input prices of coaland gas, along with the foreign exchange rate difference, made electricityproduction costs increase by 20 trillion VND (almost 855.5 million USD).Of which, coal added more than 7.33 trillion VND while oil and gas added 7.39trillion VND.
The ministry also said the current differentpricing scheme for households and businesses was also being applied around theworld. However, the scheme would be recalculated to ensure fairness amonghouseholds.
The MoIT also added that EVN had followed thecorrect procedures in calculating power bills.
The group received and answered more than 71,500requirements from customers relating to electricity bills in April.
At the 7th session of the 14th National Assembly(NA) which opened in Hanoi on May 20, the NA asked the Government toreport on recent increase of electricity and petrol prices and theireffects on CPI and socio-economic development.
Deputy Prime Minister Truong Hoa Binh saidauthorities had been investigating and clarifying the increases to ensuretransparency.
EVN Chairman Duong Quang Thanh said the groupwas building a pilot plan for the competitive electricity retail marketit would submit to the MoIT for approval in July.
Thanh said they had been working to equitise threepower generation corporations and developing a National Load DispatchCentre (NLDC). They would also privatise its retail power service for theelectricity retail market by 2021.
“EVN completed its plan to turn NLDC into a onemember limited company and will submit it to the PM for approval,” hesaid.
He added that EVN would complete a plan toseparate power distribution and retail toward the establishment ofa competitive electricity retail market.
In addition, it would invest in powermarket infrastructure to accelerate the market’s development.
On May 18, power production topped 36,000MW forthe first time, according to EVN’s National Load Dispatch Center(NLDC). Consumption on the same day reached a record-high 756.9million kWh.
EVN said consumption could go up to 800 millionkWh per day during May and June as the weather gets hotter. Summer heatintensifies while water shortage constrains power production.
Last month, Vietnam broke its national hightemperature record as the mercury hit 43.4 degrees Celsius in Ha Tinh province,according to French meteorological agency Meteo France. Weather expertshave warned that Vietnam should brace for more heat waves thissummer.
Meanwhile, electricity production is facingchallenges as reservoirs in the central and southern regions are low on water.
Despite these challenges, EVN has guaranteedthat it will supply enough electricity this year.-VNS/VNA
VNA
