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 submitted to the Ministry of Justice the draft Decree amending and supplementing a number of articles of Government Decree No. 72 of 2025 regulating the mechanism and time for adjusting the average retail electricity price.

In the third draft of the Decree, the Ministry of Industry and Trade added the content "costs directly related to the production and supply of electricity that were not fully calculated or compensated in the previous average retail electricity price".

According to the Vietnam Electricity Group (EVN), in the period 2022-2023, due to the impact of the geopolitical situation in the world, the cost of purchasing electricity increased significantly, leading to many difficulties in EVN's production and business activities. The cumulative losses for these two years amounted to approximately VND 50,029 billion. By the end of 2024, the parent company - EVN - still had nearly VND 44,800 billion in outstanding losses. If these losses are not factored into electricity prices, it will not be possible to compensate for the reduction in state investment capital in previous years.

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

The Ministry of Industry and Trade has proposed two options to offset losses in the average retail electricity price.

Option 1: Direct costs related to electricity production and supply that were not fully accounted for or compensated in the previous average retail electricity price will be determined based on business performance, with deductions from other profits, if any, in the annual separate financial statements of EVN's parent company, audited by an independent auditing firm from 2022 onwards. The Ministry of Industry and Trade will review and provide feedback on the proposed allocation of these costs as suggested by EVN.

Option 2 : The Ministry of Industry and Trade proposes that direct costs related to electricity production and supply that have not been fully accounted for or compensated in the average retail electricity price from 2022 until before this Decree takes effect be determined based on business performance, with deductions from other operating profits (if any) in the annual separate financial statements of the parent company EVN, audited by an independent auditing firm. The Ministry of Industry and Trade will consider and comment on the proposed allocation of these costs as suggested by EVN.

Under Option 2, the Ministry of Industry and Trade assesses that the aim is to address the direct costs of electricity production and supply that have not been fully accounted for or compensated in the average retail electricity price from 2022 until before this Decree takes effect. This option will not apply to subsequent years if the situation continues to occur. It also aims to require electricity companies to review, closely monitor, and carefully consider their business operations to ensure that this situation is minimized and, moreover, prevented in the future.

In addition, the Ministry of Industry and Trade proposes allocating the unallocated revaluation exchange rate difference, the unrecorded exchange rate difference, and the payment to power plants in accordance with the power purchase agreement.

Another significant change proposed in the draft decree is the monitoring mechanism for electricity price adjustments. Accordingly, the Ministry of Industry and Trade will inspect, review, and provide feedback on EVN's pricing plans before any adjustments are made, both increases and decreases (applicable to decreases of 1% or more, or increases of 2% to less than 5%). Under current regulations, the Ministry of Industry and Trade only inspects and reviews before EVN implements price increases. For price decreases, EVN makes the decision independently, and the Ministry of Industry and Trade conducts post-audits.

tienphong.vn

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