Ministry of Industry and Trade: EVN incurred losses of nearly 22,000 billion VND in 2023.

The Ministry of Industry and Trade has just announced the results of an audit of the production and business costs of electricity in 2023 by Vietnam Electricity Group (EVN), revealing a loss of nearly 22,000 billion VND.

Vietnam Electricity Corporation - Photo: NAM TRAN

The results were announced based on an inspection by a team comprising representatives from various ministries and agencies, the Vietnam Electricity Association, the Vietnam Consumer Protection Association, and the Vietnam Chamber of Commerce and Industry (VCCI).

Electricity prices increased by 2.79% in 2023.

The audit documents include activity reports. electricity production and distribution Audited consolidated financial statements, audited financial statements of EVN parent company and its member units; power purchase agreements.

These reports separate the costs of power generation, transmission, distribution and retail sales, ancillary services, and industry management.

Accordingly, the total cost of electricity production and business in 2023 was VND 528,604.24 billion. This includes the costs of electricity production and business in the stages of power generation, transmission, distribution - retail, and auxiliary - industry management, an increase of VND 35,338.94 billion (corresponding to a 7.16% increase).

The cost of electricity production and business in 2023 was 2,088.90 VND/kWh, an increase of 2.79% compared to 2022. This includes revenue from... EVN and member units whose income from the liquidation and sale of fixed assets and recovered materials, as well as income from the rental of electricity poles, has been deducted.

In the total cost of production and business operations, the total cost of electricity generation is 441,356.37 billion VND.

This corresponds to a power generation cost of 1,744.12 VND/kWh for commercial electricity.

Compared to 2022, electricity generation costs in 2023 increased by VND 29,112.84 billion.

The total cost of electricity transmission is 18,879.15 billion VND. This corresponds to a transmission cost per kWh of electricity sold of 74.61 VND.

The total cost of electricity distribution and retail is 66,773.11 billion VND, corresponding to a distribution and retail cost per kWh of electricity sold of 263.87 VND.

The total cost of auxiliary services and industry management is VND 1,595.60 billion, corresponding to an auxiliary service and industry management cost per kWh of electricity of VND 6.31.

The total subsidy for electricity production and business costs in communes and island districts not yet connected to the national power grid is 428.54 billion VND.

In addition to the losses, there are still outstanding exchange rate losses.

Output commercial electricity The electricity production in 2023 was 253.05 billion kWh, an increase of 4.26% compared to 2022.

Revenue from the sale of commercial electricity in 2023 was VND 494,359.28 billion, an increase of 8.18% compared to 2022. The average selling price of commercial electricity was VND 1,953.57/kWh, an increase of 3.76% compared to 2022.

According to the Ministry of Industry and Trade, EVN's electricity production and business results in 2023 showed a loss of VND 34,244.96 billion. Income from activities related to electricity production and business in 2023 was VND 12,423.40 billion.

In total, EVN's electricity production and business activities in 2023, including income from financial activities and from the sale of reactive power, resulted in a loss of VND 21,821.56 billion (excluding income from other production activities).

According to the audit results, the amounts not accounted for in the cost of production are as follows: electricity business In 2023, the figure was approximately 18,032.07 billion VND.

This includes the remaining exchange rate difference under the power purchase agreements of power generation units for the remainder of 2019 and the exchange rate difference under power purchase agreements for the years 2020-2023.

Source