(PLO)- Many people think that it is necessary to study to legislate the regulation on an appropriate electricity price adjustment mechanism.
On July 18, the thematic supervision delegation “The implementation of policies and legislation on energy development for the period 2016-2021” of the National Assembly Standing Committee in collaboration with the Vietnam Union of Science and Technology Associations. (VUSTA) organized a seminar “Policy on electricity prices, Vietnam’s electricity market – Some problems and solutions”.
Research on the legalization of the regulatory mechanism electricity price
Speaking at the seminar, Mr. Tran Tue Quang, Deputy Director of the Electricity Regulatory Authority (Ministry of Industry and Trade), said that since the market-based adjustment mechanism for electricity prices was issued, the retail price of electricity has been adjusted. not only ensure sustainable finance for Electricity of Vietnam (EVN) to invest and operate the system, but also ensure finance for investors with a stable power source for electricity production and business activities. However, because the price of electricity is a sensitive commodity, changes may affect the macro economy and people’s lives, so for some years the electricity price has been kept stable.
Stated the opinion of the Ministry of Industry and Trade, Mr. Quang said it is necessary to study to legislate the regulation on the mechanism to adjust electricity prices appropriately. “It is necessary to regulate the electricity price policy according to the market mechanism and the electricity trading activities to ensure the development of the electricity market,” said Mr. Quang, emphasizing that the goal is to implement electricity prices according to the market mechanism. promoting a competitive, transparent and fair electricity market, regulating electricity prices through electricity trading activities.
Mr. Quang also proposed promulgating a decree on the mechanism to adjust the retail price of electricity with the authority of the Government and the electricity unit. At the same time, the policy of electricity prices by region is added to reflect the retail cost of electricity for groups of customers.
Workshop “Policy on electricity prices, Vietnam’s electricity market – Some problems raised and solutions”. Photo: XRED
Assoc. Prof. Dr. Bui Xuan Hoi, Rector of Northern Electricity College, commented on the most recent adjustment of electricity prices in May 2023. After four years of not adjusting electricity prices, there is no need to adjust prices according to market signals. “Not adjusting for too long will lead to electricity prices not reflecting the signal of the market and the risk of large losses may occur,” Mr. Hoi said.
Talking about the consequences, according to Mr. Hoi, EVN is not able to reinvest in expanding the power system and is unable to pay the electricity sellers, thereby leading to a security risk in the power supply that is not maintained. ensure. In addition, the failure to adjust prices will put great pressure on the economy, consumers as well as implementing the roadmap to restructure the electricity industry.
From the above analysis, Mr. Hoi believes that the legal decisions on the roadmap for restructuring the power industry need to be adjusted to be more realistic and feasible. “It is not possible to keep chanting the slogan of making the electricity retail market competitive, breaking the monopoly position of EVN, but the prerequisites cannot be fulfilled” – Mr. Hoi said.
The number 1 goal is to have enough electricity
Giving his point of view, Deputy Minister of Industry and Trade Dang Hoang An emphasized that the regulation of electricity prices according to the market mechanism with the regulation of the State must continue, even if we form a retail electricity market, The state still has to control. These views are clearly stated in the energy development strategy, Resolution 55 of the Central Committee.
“Energy and electricity prices are always determined by the central government to follow the market, gradually eliminating cross-offsetting. Regardless of the structure of the electricity industry, the State still has to control and control to what extent to increase competition, transparency is important,” said Mr. An.
According to the Deputy Minister of Industry and Trade, the story of electricity prices is closely related to the management of the electricity industry. “But whatever restructuring, the structure, the number one goal is to have enough electricity. The electricity price must be the most optimal and truly transparent, whether it is the State or the private sector, “- Mr. An said.
According to Mr. An, currently the Electricity Law and the Price Law are two important laws, creating the foundation for the management of the electricity industry’s costs. Therefore, in the coming time, it is necessary to study and amend the Electricity Law, in which the electricity price regulation is legalized, not at the level of “the Prime Minister’s decision”, as well as the regulations on the electricity market.
The Ministry of Industry and Trade also proposes to develop the Law on Renewable Energy and amend and supplement the Law on Energy Efficiency.•
Ensure the target of sufficient power supply
Concluding the workshop, Vice Chairman of the National Assembly Nguyen Duc Hai said that Vietnam’s electricity price policy over the past time has contributed to macroeconomic stability, inflation control, and social security, but also revealed reveal many shortcomings and limitations.
The Vice Chairman of the National Assembly mentioned that the structure of electricity generation and adjustment of electricity prices have not yet compensated for input costs and ensured reasonable profits; the retail tariff structure is not suitable, there is no specific roadmap to apply two-component electricity prices… “The current electricity retail price mechanism is not synchronized with the reality of electricity market development; have not forecast well and fully calculate the influencing factors from the regional and world energy market” – Mr. Hai commented and said that the shortcomings, limitations, inadequacies and difficulties, obstacles in price electricity, the current electricity market affects the development of the electricity industry, the energy industry and the stable and sustainable development of the country.
“There needs to be a new way of doing things, breakthrough solutions to remove obstacles, overcome difficulties, and ensure the goal of supplying enough electricity for the economy, production, business and people’s lives at reasonable prices. management in a healthy market, ensuring national energy security,” said Vice Chairman of the National Assembly, adding that this is also the goal of the thematic monitoring delegation assigned by the National Assembly and the National Assembly Standing Committee. .