Proposal to add costs to electricity prices to reduce losses for EVN.

The Ministry of Industry and Trade has proposed adding costs directly related to electricity production and supply, as well as exchange rate differences that have not been fully accounted for or compensated in previous retail electricity prices of the Vietnam Electricity Group, to the upcoming average retail electricity price.

The Ministry of Industry and Trade has just completed the draft Decree amending and supplementing a number of articles of Decree No. 72 on the mechanism and time for adjustment, and submitted it to the Government for consideration.

The most notable point of the draft is the addition of a new group of costs that can be included in electricity prices – including reasonable expenses that were not fully accounted for in previous price adjustments.

The Ministry of Industry and Trade has proposed adding several costs that were not previously included in electricity prices, causing EVN to incur losses, to the upcoming average retail electricity price.

According to the Ministry of Industry and Trade, during the 2022-2023 period, Vietnam Electricity Group (EVN) faced immense pressure as electricity purchase costs increased sharply due to geopolitical fluctuations and international fuel prices, resulting in accumulated losses of over 50,000 billion VND over the two years. By the end of 2024, EVN still had accumulated losses of approximately 44,792 billion VND, directly impacting state investment in the group.

The Ministry of Industry and Trade argues that without a mechanism to recover these costs, state capital will continue to be eroded, weakening EVN's financial capacity and posing risks to energy security. Therefore, the draft decree adds a provision allowing the inclusion of reasonable and legitimate costs not previously included in electricity prices into the average retail price.

Specifically, this includes expenses directly related to electricity production and supply that have not been fully accounted for or compensated in previous retail electricity prices. These expenses will be determined based on the independently audited business results and annual financial statements of the parent company EVN from 2022 onwards.

In addition, there are exchange rate differences resulting from revaluation or those that have not yet been allocated, accounted for, or paid to power plants under power purchase agreements. The calculation and allocation will be carried out by EVN, which will develop a plan and report it to the Ministry of Industry and Trade for consideration.

If necessary, the Ministry of Industry and Trade will consult with the Ministry of Finance before making a decision. The Ministry of Industry and Trade affirms that the amendments aim to facilitate electricity companies in recovering reasonable costs, while still ensuring the principles of transparency, openness, and feasibility.

The draft does not introduce any new administrative procedures but only clarifies the permissible costs to ensure accuracy and completeness in electricity price adjustments. If approved, the new regulations will help EVN and electricity companies quickly resolve the issue of recovering outstanding costs, strengthen finances, and thereby maintain stable electricity supply for the economy. However, this also means that the average retail electricity price in future adjustments may increase due to the inclusion of additional costs.

While adding costs to electricity prices will put some pressure on manufacturing businesses and consumers, the Ministry of Industry and Trade believes this is a necessary step to ensure the financial stability of the electricity sector and national energy security in an increasingly volatile market.

The draft amendment to Decree 72 is not only a technical solution regarding the mechanism for adjusting electricity prices, but also an important policy move to definitively resolve EVN's long-standing outstanding costs.

tienphong.vn

Source: https://baolaocai.vn/de-xuat-bo-sung-chi-phi-vao-gia-dien-de-giam-lo-cho-evn-post879851.html