On February 15, 2023, the Ministry of Industry and Trade and the Committee for the Management of State Capital at Enterprises met with EVN at the Electricity of Vietnam (EVN) headquarters on investment and construction projects; Financial balance of EVN in 2022-2023 and development of a plan for the average retail price of electricity in 2023.

Minister Nguyen Hong Dien said at the meeting that the Ministry of Industry and Trade and the State Capital Enterprise Management Committee have held many working sessions and discussions in the past to focus on solving difficulties for enterprises.

However, the electricity industry still faces many difficulties, especially in financial matters. The price of power generation input materials increased due to the abnormal market fluctuations after the pandemic, especially in the energy sector of the world in general and the region in particular, there were energy materials increased to 200%; while the output is the domestic electricity price, which has remained stable and has not been adjusted.

Power project investors in the market are becoming increasingly diversified, increasing private sector participation. Major projects on energy sources and grids were not implemented because the National Energy Development Plan for the period 2021 – 2030 with a vision up to 2045 (Power Master Plan 8) was not approved.

Minister Nguyen Hong Dien highly appreciated EVN’s efforts to ensure electricity supply for the country’s socio-economic development and people’s daily life, especially considering that EVN has to face many challenges.Unprecedented and very different challenges and difficulties in recent years, geopolitical conflicts in the world, the energy crisis, which leads to high fuel prices for electricity generation.

Regarding EVN’s recommendations to the Ministry of Industry and Trade, the Minister took the view that the Departments of the Ministry of Industry and Trade should be instructed to coordinate with EVN to find solutions to overcome difficulties and obstacles in the investment and construction of Electricity projects implement electricity market, electricity sales mechanism.

In particular, for construction investments to make recommendations related to gas supply for thermal power plant projects in O Mon and Dung Quat power plant centers; Engineering design assessment in batches for the remainder of the Quang Trach I project; Evaluation of the technical design report of the Bac Ai pumped storage power plant; Completion of Report to Prime Minister on Con Dao Load Demand and Power Plan; Ensuring sufficient coal supply for thermal power plants.

For the formulation of plans to adjust the average retail price of electricity in 2023, the Minister instructed EVN to follow the provisions of Decision No. 24/2017/QD-TTg of 30/30 The Prime Minister’s June 2017 minister sets the mechanism for adjusting the average retail price for electricity.

The minister stressed: “The adjustment of electricity prices must be calculated, evaluated and fully considered the impact on inflation, people’s lives and the government’s macroeconomic management, and in accordance with the regulations.”

In addition, the Minister of Industry and Trade instructed EVN to actively participate in proposals for changes and additions to the applicable regulations on the mechanism for adjusting the retail electricity price, the structure of the retail electricity tariff in the power plants, the electricity price mechanism, the electricity market in the Electricity Act , the Direct Electricity Purchase and Sale Mechanism (DPPA) to ensure that the electricity price fully reflects market factors and create an equal environment between the parties in the electricity industry.

At the meeting, Mr. Tran Dinh Nhan – General Director of EVN reported on the situation of power generation and business in 2022 and the plan for 2023 of EVN, the solutions and recommendations for the Ministry of Industry and Trade, the State Capital Management Committee Companies to ensure power generation activities in 2023.

The recommendations were heard and responded to by the Committee and the Department of Industry and Trade; At the same time, the technical departments and agencies of the two agencies have also proposed specific solutions to fully comply with the recommendations. A number of recommendations for further research and suggestions for workable and effective solutions in accordance with the law were noted.

Also at the meeting, Mr. Nguyen Hoang Anh – Chairman of the Enterprise State Capital Management Committee – directed EVN to implement solutions to overcome difficulties and obstacles in the investment and construction of energy projects such as Mr. Subject III, Tri An and to extend coordinates with the relevant authorities the preparation of a report to the Prime Minister to examine solutions to ensure the balance of electricity production and business results in 2022, including relevant content: in relation to the assessment and classification of companies.