The application period of electricity price reduction for customers using power for daily activities with the use cycle from April, May to June, corresponding to the electricity bill in May, June and July 2020.
In order to specify the reduction of electricity price, on 30 March 2020, EVN's Standing Committee of Party Committee issued Resolution No. 36-NQ/DU with the aim of well implementing the Prime Minister's direction, promptly remove difficulties in production and business, effectively cope with the COVID-19 pandemic, ensuring the completion of the Group's tasks and plans for 2020.
EVN has proactively reported and proposed the Government and MOIT on solutions to support customers in power use during the COVID-19 pandemic, including the reduction in electricity price.
EVN mobilizes human and material resources to ensure that the electricity price reduction is implemented in accordance with regulations in order to support people and businesses during the COVID-19 period.
This reduction represents a great effort by EVN when the production and business activities in the first quarter of 2020 were not favourable, due to the unpredictable hydrological situation, the water volume in the hydroelectric reservoirs was poor and in serious shortage.
Specifically, hydropower mobilization is 8.93 billion kWh, down by 30.4% over the same period of 2019. EVN must mobilize oil-fired thermal, with high production costs, with mobilized output of 1.02 billion kWh, an increase of nearly 1 billion kWh over the same period of 2019. Coal-fired thermopower mobilization was 33.91 billion kWh, up 21.3% over the same period of 2019.
In addition, the complicated situation of COVID-19 pandemic has led to the delay in service and industrial production sectors, which has directly exerted impact on electricity business and construction progress of power and grid projects, etc.
Given the fact, EVN has ensured power supply security and has committed to ensuring power supply for the whole 2020 with load demand and water frequency under the scenarios.
Regarding the requirements and directions of the Prime Minister on urgent tasks and solutions to remove difficulties for production and business, ensure social security to cope with the COVID-19 pandemic, the Group also set out specific tasks and solutions, including ensuring safe and stable power supply for concentratedly isolated areas run by the State agencies, general hospitals and hospitals performing the task of treating COVID-19 infected patients.
Immediately after receiving MOIT’s guidance on electricity price reduction, Electricity of Vietnam has finally instructed Power Corporations to review and make statistics on entitled customers, propose solutions to ensure stable and safe power supply for these subjects during the pandemic prevention period. The member units committed to mobilize full human and material resources to immediately implement the price reduction for customers due to the impact by COVID-19.
Assessing the efforts made by EVN, Mr. Nguyen Tien Thoa - Chairman of Vietnam Valuation Association, former Director of Price Management Department (Ministry of Finance) said: The reduction in electricity price is the necessary and right decision, demonstrating the responsibility of EVN - a state-owned enterprise that makes great contributions to the Government, ministries and branches to remove difficulties for production and business and people's daily activities in the context of the strong impact of the COVID-19 pandemic.
“The total amount of price reduction in three months is about VND 11,000 billion. This is a great effort by EVN in the context of common difficulties of the whole economy, including the Electricity sector. We always wishes more, but in the general difficult context, the said decision is completely acceptable,” said Mr. Nguyen Tien Thoa.
Also, according to Mr. Thoa, the decision will contribute to reducing production and business costs from power consumption for businesses and business households; as well as reducing spending costs for householders. In macro, electricity price reduction helps control consumer price index in close association with the set-out targets.
However, according to Mr. Thoa, the reduction will exert great impacts on the state budget revenue and the production as well as business activities of EVN. Therefore, from now to the end of the year, the Electricity sector should try its best to work out a reasonable way to operate the electricity system to save costs. Along with that, it is planned to review the expenses for making a more reasonable balance, sacrificing profits to cover production and business costs in this reduction of electricity price.
|
April, May and June are the peak months of the hot season, so the need for power will increase. The capacity of kWh also increases correspondingly for the electrical equipment in use.
In spite of the reduction in electricity price, EVN recommends that people and businesses should use economically and efficiently to accompany EVN in ensuring national energy security.
|