Reports that there will be 4 power price adjustments this year has been the cause of worry.
EVN has the right to adjust power price four times a year
"Despite reductions in the price of power generation, the price of power is expected to rise several times this year," said economist Nguyen Minh Phong.
“I wonder about the social responsibility of the power sector, and whether they do not just have their own interests in mind," he added.
The power price hikes may negatively impact the manufacturing sector and the price of essential goods. The economist said that these things should be carefully considered before making such decisions.
Despite the decreasing price of petroleum and abundant water for hydroelectricity, planned price increases for power remain in place.
"The explanation that the increases are to offset losses from last year is insufficient since no official statistics have been released. With such flimsy arguments, it is no wonder that people are worried about further adjustments. Another price increase at this time would be unreasonable when the economy is in such a difficult period," he said.
According to Tran Viet Ngai, Chairman of Vietnam Energy Association, even if power price remains the same the power sector will make a profit. The current purchasing price is VND700/kWh, while the selling price is VND1,400-1,500/kWh.
Economist Le Dang Doanh said, “If the price of power is regulated based on the market mechanism, it should experience fluctuations during adjustments. We will not experience a lack of electricity this year, so it doesn't make sense to raise the price."
Economist Pham Chi Lan said, “In the past EVN raised raised prices because the price of coal has risen by 10%-11.5%, while petroleum and natural gas saw similar increases. But now these input materials’ prices have gone down."
Professor Le Dang Doanh suggested, “The power sector must pay attention to their non-core business investments. If they continue to raise the price of power to offset bad investments, there is no possibility for reductions in the future. The sector has claimed to have been suffering losses, but they need to clarify the reasons for these losses and which investments they are coming from. At the same time, salaries for officials in the sector are high in relation to others."