Power price hike takes centre stage at NA discussion

Speaking at the discussion session as part of the ongoing NA seventh sitting, NA deputy of An Giang Province Nguyen Lan Hieu said that the failure in handling the public outcry and complaints related to traffic projects and electricity and fuel price adjustments had made the voters lose confidence in the State apparatus and policies.

As such, it is necessary to consider and discuss the problem to adopt the most appropriate solution, Hieu said.

Commenting on the power price hike, the deputy pointed out that it was necessary to determine the main cause of the hike, proposing the Ministry of Industry and Trade strictly review the situation and find out whether the electricity price hike was due to the lack of competition in electricity trading and the power transmission and power monopoly.

Also, Nguyen Quoc Han from Ca Mau Province noted that the Government had received a report from the Ministry of Industry and Trade confirming that nothing was amiss with the recent power price hike and that it was in line with regulations and standard processes.

Voters did not care whether the decision to raise the electricity price by 8.36% on average was in line with regulations, Han said, adding that the hike had directly affected residents’ daily lives and pushed up the prices of other products.

On the other hand, the wages for State staff and public employees were not revised upward, the deputy said.

Hau questioned how inflation control would be affected by the power price hike, proposing the Government appoint the State Audit of Vietnam to audit the business operations of the power sector.

Meanwhile, NA deputy of Binh Thuan Province Nguyen Thi Phuc suggested that the electricity price hike would trigger a domino effect, pushing up the prices of other goods, especially materials used for production.

“The Government should work out preventive measures to avoid an increase in the prices of many goods, boost market surveillance and inspect firms’ price adjustments,” Phuc said.

Participating deputies voiced concern over the possibility of inflation being chased up due to the power price hike.

A 2019 economic report from the Vietnam Institute for Economic and Policy Research showed that the full-year inflation rate may hit 4%-5% due to the power price hike and recent price adjustments for fuel.