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Intellectual people
9 times of adjustment, electricity prices only increased. When can you talk about reducing electricity prices? Industry and Trade Minister Tran Tuan Anh stated that by 2024, electricity prices will increase or decrease, due to the market decision …
The State will “lower” electricity prices!
Explanation on the current situation and solutions for the development of electricity until 2030, the Vice Chairman of the Finance and Budget Committee, Hoang Quang Ham, questioned that since 2011, there have been 9 adjustments of the retail prices of electricity, including there were 9 times of increase setting, not decrease setting. There is an opinion that the reason is the outdated retail electricity tariff … Mr. Ham wonders, when can we discuss the reduction of electricity prices?
The delegates also expressed their point of view of being truly open, transparent and egalitarian in electricity development according to the market mechanism.
Minister Tran Tuan Anh said that in recent years, the government has led the preparation of conditions for the gradual improvement of a competitive electricity environment. So far, the competitive power generation environment has been completed, 94 power plants have entered this market. The competitive environment for wholesale electricity has been gradually completed.
The last stage is competitive retail electricity, which is currently being tested for a fully competitive electricity environment by 2024. Consequently, the Minister of Industry and Commerce affirmed that the increase and decrease in electricity prices will follow the input price mechanism, production costs will determine electricity prices on the basis of openness and transparency according to with the laws of the market. fair competition between all players in the electricity market.
Minister Tran Tuan Anh explained, in fact, from 2011 until now, Vietnam has not been able to guarantee the balance of electricity production costs for EVN and other manufacturers. The input factors, the cost of electricity production always increased but did not decrease.
In addition, the Price Law stipulates and the Prime Minister approves the electricity retail price tariff to ensure socio-economic regulation and social security. Recently, due to the impact of the Covid-19 epidemic, the price of oil and gas in the world has decreased, the ministry has also actively proposed with EVN to propose a plan to reduce about 10% of the price of electricity (what which makes EVN reduce revenue by more than 10,000 billion. VND), helping to reduce the difficulties of people and companies.
The industry and commerce commander also stated that he is actively researching and completing options on the retail electricity rate. Recently, after collecting people’s opinions, in which public opinion reflects the inappropriate points, the Ministry has aimed to maximize absorption to study, continue to adjust the options so that they are truly adequate. use.
“The Party’s policy to operate the market economy, including the input electricity and the sale 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 Phung Quoc Hien questioned the National Assembly.
Minister Tran Tuan Anh stated that “electricity prices are moving towards market-oriented deployment levels.”
Consequently, the Ministry of Industry and Commerce has developed a model proposal for a competitive retail electricity market with 3 implementation phases. Specifically, phase 1 (until 2021) is a preparation phase. Phase 2 (2022-2024) allows consumers to purchase electricity on the spot market and Phase 3 (after 2024) allows customers to choose a retailer. .
To clarify, Mr. Tran Tuan Anh said that at that time, the electricity market will increase or decrease. Consequently, the state will only administer electricity transmission charges, it will not interfere with electricity prices.
“We also feel regret and frustration that we have not been able to reduce electricity prices. By 2024, when the conditions for the complete commercialization of the electricity sector are met, the State will not interfere in the price, the increase or decrease in electricity prices will be decided by the market ”- said the Minister of Industry and Commerce.
It is not a “burden” on the economy
The chairman of the Economic Committee, Vu Hong Thanh, suggested that a number of issues related to the country’s electricity development should be clarified in the future.
The Ministry of Industry and Commerce needs to clearly analyze the causes of the slow progress of a series of energy projects, the deficiencies in attracting investment capital and the solutions related to energy imports in the near future. In fact, recent energy projects have been slow mainly due to land clearing. Or many localities do not recommend investing in coal thermal energy.
According to Mr. Vu Hong Thanh, it is necessary to clearly define the role of coal thermal energy, as well as to handle environmental problems such as coal slag from thermal energy, solar cells from renewable energy in time.
Similarly, the vice chairman of the Science, Technology and Environment Committee, Le Hong Tinh, stated that coal power remains a reality to ensure national energy security. The speed of development of power projects has not been satisfactory recently because most of the coal power projects are behind schedule. Many localities that had already registered thermal power projects “backtracked”, turning their backs on pollution fears. So, what is the technological orientation of the Ministry of Industry and Commerce for the safe implementation of thermal energy projects, ensuring the electricity supply capacity?
“Many opinions say that the Power Plan remains” primitive “, slow to adjust, not flexible, leading to the loss of investment attraction opportunities. The issue of thermal energy from coal also has mixed opinions. So what is the opinion of the Minister of Industry and Commerce on this issue? ”- The Vice President of the National Assembly, Phung Quoc Hien, contributed questions.
In response, Minister Tran Tuan Anh confirmed deficiencies in the current power sector, including electricity planning VII. Specifically, electricity diagram VII with forecast for renewables such as wind is not realistic. While Vietnam has potential for renewable energy. Or oil and gas reserves are declining, the additional gas source for the power plant is insufficient, the risk of electricity shortage. This is the “stubborn” problem with this electrical diagram.
Furthermore, the thermal power of coal is also locked in the power diagram 7 in terms of the thermal power ratio of coal, while the supply of this type of power plant increases.
“‘Primitive’ planning has been influential in attracting resources, especially resources from private companies. We recognize the limitations of energy planning VII and lean energy planning 7,” said Minister Tran Tuan Anh.
The Minister also emphasized that in energy plan VIII, the implementation of coal energy projects will be strictly managed. The economy will not include more coal power projects in the planning. Projects will be fully evaluated based on environmental factors. Along with that, there will be adjustments to the structure of energy sources in the near future.
In particular, it is not possible to “overload” the economy when high-cost energy sources come into operation. Coal power will be calculated together with gas power projects to be adjusted accordingly, ”said Minister Tran Tuan Anh.
Phuong Thao