The Ministry of Industry and Trade (MoIT) has said it will carefully consider all options to adjust electricity prices in a reasonable manner to minimize the impact on the economy and people’s lives, Deputy Minister Do Thang Hai has said.

He made the statement while answering questions at the regular government press conference in Hanoi on January 3 relating to Electricity of Vietnam (EVN)’s proposal to raise retail prices.

A Government Decision issued in 2017 clearly stipulates that electricity prices will be adjusted every six months to match the actual situation. However, he said, it has been four years since the last adjustment.

Input costs for electricity production around the world, in the region, and in Vietnam have all increased over the years, affecting the cost of electricity production.

Sharp global energy market fluctuations, geographical tensions in Europe, and rising inflationary pressure have fueled electricity prices in many countries, and Vietnam is no exception.

The average price of imported coal for power plants in Vietnam in the first ten months of 2022 rose by more than 150 per cent compared to 2021. The price of domestic mixed coal had increased more than 50 per cent against 2021 as of the end of the third quarter of 2022.

All of these factors have made electricity production and purchasing costs much higher than expected, the Deputy Minister said.

The government has instructed MoIT to coordinate with relevant ministries and agencies to study and suggest measures in response to EVN’s proposal.

As electricity prices have a major impact on the macro-economic situation and people’s lives, management must be carefully considered and fully assessed, he said.