EVN will propose a plan to adjust the electricity tariff for household consumption.

Speaking to the press about public concerns following the electricity price increase, Mr. Duong Quang Thanh, Chairman of EVN, affirmed that the company will provide the Ministry of Industry and Trade and the Ministry of Planning and Investment with complete information on customers' monthly electricity consumption. This is to assess the indirect impact of the price increase, including comparing monthly electricity consumption with the same period of the previous year and before the price increase.

"Based on electricity consumption data from customers across different tariff tiers and the experience of other countries, EVN will report to the Ministry of Industry and Trade on a plan to adjust residential electricity tariffs, seeking broad public opinion before submitting it to the Prime Minister for consideration and decision," Mr. Thanh informed. EVN stated that it will complete the installation of remote electronic electricity meters in Hanoi and Ho Chi Minh City next year.

Following an 8.36% increase in the average retail electricity price on March 20th, many households reported a sudden and significant increase in their electricity bills, sometimes doubling or tripling. The Prime Minister subsequently instructed the Government Inspectorate and relevant ministries to investigate the price increase, the calculation method, and the collection of payments from electricity users.

In a report submitted to the Prime Minister, the Ministry of Industry and Trade stated that, if fully calculated, the average retail electricity price could have to increase by 9.26% instead of the 8.36% increase mentioned recently. The reason is that this increase does not account for the 3,260 billion VND difference in exchange rates for electricity trading expected in 2018.

Accelerating the development of the electricity market to operate a competitive retail market by 2021 is seen by the Ministry of Industry and Trade and EVN as a long-term solution to the current electricity price problem.According to Mr. Duong Quang Thanh, 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 expedite progress, EVN stated that it will invest in electricity market infrastructure, finalize draft legal regulations for submission 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 three power generation corporations, transfer the National Power System Dispatch Center (A0) to independent accounting, and equitize the retail service sector. After two years of operating under the joint-stock company model, EVN will develop a plan to divest all its capital in these corporations and report it to the Prime Minister for a decision.

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

The proposal to convert A0 into a Limited Liability Company with a single owner was submitted to the State Capital Management Committee at enterprises at the end of 2018 for consideration and then to the Prime Minister for approval.

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