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Vietnam Energy Forum

EVN proposes to apply the market mechanism for electricity prices as the gasoline prices

 - On the morning of December 12, in Hanoi, the Committee for Management of State Capital at Enterprises was presided over by Mr. Nguyen Hoang Anh - Chairman of the Committee. At the Conference for deploying Decision No. 1479/QD-TTg of the Prime Minister and the Plan for mobilizing resources of the groups and corporations participating in activities and projects in the program of the socio-economic rehabilitation and development, the Electricity of Vietnam (EVN) proposed to apply the market mechanism for electricity prices, as the input factors increase, the electricity prices automatically increase and vice versa in a timely manner (similar to the mechanism to adjust the gasoline prices).

EVN proposes to apply the market mechanism for electricity prices as the gasoline prices
The Conference for deploying Decision No. 1479/QD-TTg of the Prime Minister and the Plan for mobilizing resources of the groups and corporations participating in activities and projects in the program of socio-economic rehabilitation and development.

Exchanging at the conference, Mr. Tran Dinh Nhan – EVN General Director said that, despite facing many difficulties in 2022, EVN tried its best to provide enough electricity for all needs of the socio–economic rehabilitation and development and the life of the people after the Covid-19 pandemic. However, in 2022, input costs for electricity production increased very high as the oil price increased by several dozen percent, gas price "followed" the oil price, and coal price increased by 600% in comparison with the prices in early 2021. Meanwhile, the electricity prices are remained stable from 2019 to now, which leads EVN to a huge financial imbalance.

According to Mr. Nhan, the financial imbalance leads EVN to risk without the money to pay the electricity sellers. This situation will lowly appreciate EVN credit rate extremely difficult to get bank loans for power construction investment projects. That situation will greatly affect the energy security of the country. Therefore, EVN proposes to apply the market mechanism for electricity prices.

On the other hand, as an enterprise playing a major role in electricity supply activities, EVN proposes the Government consider assigning EVN and the power generation corporations to implement important power plants to ensure energy security and the Government to make mechanisms and policies for the important power plants and grids under the state priority projects to re-borrow ODA capital loans without any credit risk.

In addition, EVN also asks the competent authorities to approve the Power Development Planning VIII soon so that the investors have a basis for deploying the power plant and grid projects to ensure the electricity supply in the coming years.

At the conference, Mr. Nguyen Sy Hung - Vice Chairman of the Committee highly appreciated EVN's efforts in recent years. As a state-owned enterprise, providing essential products for the economy and society, EVN sacrificed the benefits to contribute to the rehabilitation of the economy after the pandemic.

Mr. Nguyen Hoang Anh also highly appreciated the role of 19 groups and corporations, including EVN, which overcame difficulties and challenges and made great and important efforts for the national economy in recent times. Mr. Nguyen Hoang Anh also asked the Vietnam Oil and Gas Group (PVN), EVN, the Vietnam National Coal and Mineral Industries Group (TKV), and the Vietnam National Petroleum Group (Petrolimex) to ensure national energy security, the market stabilizing, electricity supply for people's daily life, production and business.

Mr. Nguyen Hoang Anh suggested enterprises drastically propose to the Committee and submit to competent authorities for consideration and removal.

VietnamEnergy.vn

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