It is true that current electricity prices are only going up, not going down



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Industry and Commerce Minister Tran Tuan Anh acknowledged the current fact that “electricity prices only increase, but they do not decrease” and commits that by 2024 electricity prices will increase or decrease.

This morning (September 7), the Economic Committee of the National Assembly made an explanation of the current situation and solutions for electrical development to meet the socio-economic development requirements.

Why does the price of electricity only increase, not decrease?

Many delegates questioned the Minister of Industry and Commerce about electricity prices. “The Party’s policy of operating the market economy, including the input electricity and the selling price, but in reality, the current electricity price has not kept pace with the market economy, reducing the motivation for development of electricity? “, Vice President Asked the National Assembly Phung Quoc Hien.

Minister of Industry and Commerce: We also regret that the price of electricity has not been reduced
Phung Quoc Hien, Vice President of the National Assembly.

The Vice Chairman of the Finance and Budget Committee of the National Assembly Hoang Quang Ham also raised the issue of the information that from 2011 to now there have been 9 electricity price adjustments, but “only the increase has never decreased” and only the time to translate Covid -19 new ones have decreased.

Industry and Trade Minister Tran Tuan Anh said that now our goal is to build a competitive electricity market. According to the project approved by the Prime Minister in 2011, there are 3 levels: the first is the competitive power generation market, which began to be implemented in 2011, 2012 and now completed as reported to the National Assembly, there are more than 94 plants of energy. participate in the competitive electricity market.

At the second level, the competitive wholesale electricity market that has been deployed since 2018, 2019 already has this market and we have conducted a competitive sale of electricity with large corporations outside of EVN that are directly involved.

A competitive tier three retail electricity price is expected in 2024, after having a pilot review from 2021 to 2024 to ensure the stability, feasibility and effectiveness of this model so that there really is a mechanism. market.

Minister of Industry and Commerce: We also regret that the price of electricity has not been reduced
Explanation for electrical development.

“That means that electricity users, whether living or in production, directly sign contracts with the distribution and sale of cheap electricity. This electrical mechanism has increased and decreased according to the structure and the market economy. entry price of electricity production cost, “Minister Tran Tuan Anh analysis.

According to the Minister, until then, the State only manages the rates of the transmission and distribution system. Remaining mechanism, the production cost structure is the retail price decision.

“Therefore, it can be said that until 2024 the market will be complete and the price of electricity will operate according to the market mechanism. Currently, this has not been done,” said the Minister.

Mr. Tran Tuan Anh further explained that, currently, the Price Law regulates, there is a price mechanism for different areas, with a stable 5-year retail electricity tariff, which includes electricity for daily life and electricity. production and commercial electricity.

Therefore, in recent years, despite the desire to set electricity prices according to the market mechanism, according to the Price Law, the role of the State has to regulate prices, including issues of support for communal subjects. Association, the poor. Therefore, the past process must be guaranteed under the direction of the Government.

However, as delegate Hoang Quang Ham stated in the past, “electricity prices only increase but do not decrease” because there are factors in the period 2011-2020, when a competitive electricity market is implemented. There is no opportunity to balance and secure the cost of production of electricity produced by EVN and investment companies, ”said Minister Tran Tuan Anh.

We feel sadness and frustration when we have not been able to reduce electricity prices.

The Commander of Industry and Commerce acknowledged that, in fact, consumers and users of electricity have not had the opportunity to enjoy the reduced price mechanism.

Minister of Industry and Commerce: We also regret that the price of electricity has not been reduced
Minister of Industry and Commerce Tran Tuan Anh

Since the entry stages of electricity prices, as well as overhead costs, have not decreased, in recent years, when there are signs of a decline in inputs, such as gas and coal prices, we have adjusted a electricity prices step down by 10% and It is also a factor to reduce electricity prices during the translation of Covid-19.

The Minister of Industry and Commerce said that, in the opinion of the Hoang Quang Ham delegates, the Ministry continues to study the construction of retail electricity prices. Therefore, the past time has made public opinion on the scale of retail electricity prices, as well as the price of retail electricity a price.

“After having comments and opinions from the public and the people, we know that there are still many problems, the tiered price of electricity and the one-time price of electricity do not guarantee our multipurpose and supportive people. People, both ensuring production targets but at the same time ensuring electricity savings. So we have actively retracted the price of electricity to a price to further investigate and improve, “said Minister Tran Tuan Anh.

Minister Tran Tuan Anh said that there are indeed very clear guidelines on electricity prices that need to be adjusted and operated on the basic principles of the market, including the structure of input factors of raw materials and fuel for electricity production. .

However, during the period 2010-2011, at that time, I was not involved in the management of this field, but almost EVN in the process of production and distribution of its electricity, often suspended debts, It has not been calculated, especially the issue of the exchange rate, “said the Minister of Industry and Commerce.

Mr. Tran Tuan Anh said that based on inputs, in the process of building the retail price of electricity, the guidance circular was compared. EVN’s business reports are audited annually. In particular, the production cost structure of the electricity price has been audited and assessed by the authorities before being presented to the Prime Minister …

“We feel regret and frustration when the price of electricity has not been reduced, but we believe that in the next time, when we form a competitive electricity market, the history of electricity prices will be completely transparent and public.” . I think our principle at that time will be to ensure that market factors, electricity prices go up, down and are in line with the functioning of the market, ”Minister Tran Tuan Anh replied.

Thu Hang

Present to the Prime Minister the structure of the retail electricity tariff in the third quarter

Present to the Prime Minister the structure of the retail electricity tariff in the third quarter

According to Vice Minister of Industry and Commerce Do Thang Hai, the structure of the new retail electricity tariff will be completed and presented to the prime minister for consideration in the third quarter.

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