EVN will propose a plan to adjust household electricity prices.

Talking to the press about people's feedback after the electricity price increase, Mr. Duong Quang Thanh - Chairman of EVN affirmed that he will provide full information on customers' monthly electricity consumption to the Ministry of Industry and Trade and the Ministry of Planning and Investment. This is to assess the indirect impact of the impact after the electricity price increase, including comparing monthly electricity consumption with the same period last year and before the electricity price increase.

"Based on the data on electricity consumption of customers according to the ladder and the experience of other countries, EVN will report to the Ministry of Industry and Trade on the plan to adjust the household electricity price list, and widely collect opinions to submit to the Prime Minister for consideration and decision," Mr. Thanh informed. EVN said it will complete the installation of remote electronic meters in Hanoi and Ho Chi Minh City next year.

After the average retail electricity price increased by 8.36% from March 20, many households reported that their electricity bills had increased dramatically, even double or triple the usual price. The Prime Minister then asked the Government Inspectorate and ministries to inspect the price increase, calculation methods and collection of electricity bills from households.

In a report to the Prime Minister, the Ministry of Industry and Trade said that if fully calculated, the average retail electricity price may have to increase by 9.26% instead of the recent increase of 8.36%. The reason is that this increase has not yet calculated the expected difference of VND3,260 billion in electricity exchange rates in 2018.

Accelerating the development of the electricity market to operate a competitive retail market by 2021 is considered by the Ministry of Industry and Trade and EVN as a long-term solution to the current electricity price problem.Mr. Duong Quang Thanh said that EVN is developing a pilot project for a competitive retail electricity market and will submit it to the Ministry of Industry and Trade for approval in July.

To speed up progress, EVN said it will invest in electricity market infrastructure, complete draft legal regulations to submit to the Ministry of Industry and Trade for promulgation, and separate retail units for equitization according to the roadmap.

To implement the retail electricity market from 2021, according to the Prime Minister's decision, EVN will equitize 3 power generation corporations, transfer the National Power System Control Center (A0) to independent accounting and equitize the retail service sector. After 2 years of operating under the joint stock company model, EVN will develop a plan to divest all capital in these corporations and report to the Prime Minister for decision.

Power Generation Corporation 3 has completed its equitization, while the equitization plan for Power Generation Corporation 2 has been approved, and the plan for Power Generation Corporation 1 is being submitted to the Prime Minister. All will be completed next year," said Mr. Thanh.

The project to convert A0 into a one-member LLC was submitted to the State Capital Management Committee at enterprises at the end of 2018 for consideration and submission to the Prime Minister for approval.

"EVN will complete the project to separate the organization of electricity distribution and retail in 2019 and all of the above restructuring work is aimed at forming a competitive electricity retail market," Mr. Thanh emphasized.