At the Price Steering Committee meeting earlier this week, the Ministry of Industry and Trade proposed adjusting electricity prices this year to reflect fluctuations in input costs and help Vietnam Electricity Group (EVN) have resources to pay investors of power plants.
The proposal to increase electricity prices was made by the Ministry of Industry and Trade in the context of EVN's still very difficult financial situation, with a loss of about VND17,000 billion last year despite having its selling price adjusted twice.
In total, in 2022-2023, this group lost nearly 38,000 billion VND, not including the exchange rate difference still hanging from previous years, about 14,000 billion VND.
Speaking at EVN's 2023 year-end conference on January 2, Mr. Nguyen Anh Tuan, General Director of EVN, said: The total cost of electricity production of the group is 2,092.78 VND/kWh, while the selling price is 1,950 VND/kWh. The production cost that EVN has to buy electricity from its units as well as external sources is approximately 1,620 VND/kWh.
"The cost of purchasing electricity accounts for 80% of the total cost, which is extremely unusual," Mr. Tuan emphasized.
Because, experience from other countries shows that the maximum cost of electricity production only fluctuates around 40-50%, the remaining 50% is for transmission, distribution and other activities. Now the cost of electricity production accounts for 80%, only 20% is for other costs, it is very difficult to balance finances and optimize the entire operation.
For 2024, EVN leaders predict that the group will continue to face a series of difficulties and challenges. The immediate challenge is the ability to balance finances, because for the past 2 years, EVN has not been able to balance, and this situation may recur.
Referring to the very difficult financial situation, not knowing when the losses will end, Mr. Dang Hoang An, Chairman of EVN said: If the financial situation does not improve soon, the lives of workers will be affected, many low-paid officials will leave the industry.
TB (according to Vietnamnet)Source
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