Proposed plan to compensate EVN for nearly 44,800 billion VND in electricity prices

The Ministry of Industry and Trade proposed two options to include costs directly serving the production and supply of electricity of Vietnam Electricity Group but not yet fully calculated and compensated in the previous average retail electricity price.

The Ministry of Industry and Trade has just sent the Ministry of Justice a dossier for appraisal of the draft Decree amending and supplementing a number of articles of Decree No. 72/2025 of the Government regulating the mechanism and time for adjusting average retail electricity prices.

In the third draft Decree, the Ministry of Industry and Trade added the content of "expenses directly serving the production and supply of electricity but not yet calculated and fully compensated in the previous average retail electricity price".

According to Vietnam Electricity (EVN), in the period of 2022-2023, due to the impact of the geopolitical situation in the world, the high cost of purchasing electricity has led to many difficulties in production and business activities of EVN, the accumulated loss of these 2 years is about 50,029 billion VND. By the end of 2024, the parent company - EVN still has about 44,800 billion VND. If it is not calculated to recover in the electricity price, it will not be able to compensate in time for the decrease in State investment capital in the previous years.

The Ministry of Industry and Trade proposed two options to offset EVN's loss of nearly VND 44,800 billion in electricity prices.

The Ministry of Industry and Trade proposed two options to include the loss in the average retail electricity price.

Option 1: Direct costs for electricity production and supply that have not been calculated and fully offset in the previous average retail electricity price are determined based on business performance, with deductions for other profits, if any, in the business performance report in the annual separate financial statements of EVN's parent company audited by an independent auditor from 2022 onwards. The Ministry of Industry and Trade shall review and comment on the plan for allocating costs at this point proposed by EVN.

Option 2 : The Ministry of Industry and Trade proposes that the direct costs for electricity production and supply that have not been calculated and fully offset in the average retail electricity price from 2022 to the year before this Decree takes effect, are determined based on business performance, with deductions for other operating profits (if any) in the business performance report in the annual separate financial statements of EVN's parent company audited by an independent auditor. The Ministry of Industry and Trade reviews and comments on the plan to allocate the costs at this point proposed by EVN.

With option 2, the Ministry of Industry and Trade assesses that the purpose of handling the direct costs for electricity production and supply that have not been calculated and fully compensated in the average retail electricity price from 2022 to before the effective date of this Decree, not applicable to the following years if it continues to occur, and also to request electricity units to review, closely follow and consider in implementing production and business activities to ensure minimizing and, moreover, not letting this happen in the future.

In addition, the Ministry of Industry and Trade proposed to allocate the unallocated revaluation exchange rate difference and the unrecorded exchange rate difference and pay it to power plants according to the agreement in the power purchase contract.

Another important change proposed in the draft decree is the monitoring mechanism when adjusting electricity prices. Accordingly, the Ministry of Industry and Trade will conduct inspections, reviews and give opinions on EVN's price plans before adjusting both increases and decreases (applicable to reductions of 1% or more or increases of 2% to less than 5%). Under current regulations: the Ministry of Industry and Trade will only inspect and review before EVN makes an increase in electricity prices. In case of price reduction, EVN will decide on its own and the Ministry of Industry and Trade will conduct post-inspection.

tienphong.vn

Source: https://baolaocai.vn/de-xuat-phuong-an-bu-lo-gan-44800-ty-dong-cua-evn-vao-gia-dien-post881488.html