EVN proposes to include the loss of more than 44,700 billion VND in the cost of calculating electricity prices

The Ministry of Industry and Trade has just submitted a draft document to the Government on the draft Decree amending and supplementing Decree 72/2025 on the mechanism and time for adjusting average retail electricity prices.

According to the Ministry of Industry and Trade, according to EVN's report, due to the impact of the geopolitical situation, the high cost of purchasing electricity in the period of 2022-2023 caused many difficulties for the enterprise, with an accumulated loss of about VND 50,029 billion. By the end of 2024, the accumulated loss of the parent company EVN will still be about VND 44,792 billion.

This reduces the State investment capital in EVN and does not preserve the State capital in the enterprise. Therefore, 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 period.

"EVN proposes that the Minister of Industry and Trade report to the Prime Minister to allow calculating this accumulated loss as an expense allowed to be included in the average retail electricity price," the draft submission stated.

In addition, other costs that have not been fully included in the electricity price are also proposed to be allocated, including costs directly serving electricity production and supply determined according to annual audited financial reports from 2022 onwards. EVN proposes a plan to allocate these costs, reports to the Ministry of Industry and Trade for consideration, and if necessary, consults with the Ministry of Finance.

In addition, there are unallocated revaluation exchange rate differences and exchange rate differences that have not been recorded and paid to power plants under power purchase agreements.

The Ministry of Industry and Trade assessed that recently, Vietnam Electricity Group (EVN) has built, calculated and adjusted the average retail electricity price in accordance with regulations, helping to make it more transparent, convenient and flexible in updating and adjusting prices.

However, the management agency believes that through actual implementation, there are still some contents that need to be considered and adjusted to ensure the principle that all reasonable and valid costs need to be included in the calculation and adjustment of retail electricity prices.

Therefore, the Ministry of Industry and Trade said that EVN's proposal needs to be amended and supplemented to allow the recovery of direct costs for electricity production and supply that have not been calculated and fully compensated in the previous average retail electricity price, based on the results of the announcement of electricity production and business costs or annual audited financial reports.

"Retail electricity prices need to be resolved promptly for electricity units to recover full costs, contributing to preserving and developing business capital of enterprises," the draft report of the Ministry of Industry and Trade clearly stated.

The drafting agency said that the draft decree aims to amend and supplement regulations so that electricity enterprises can recover sufficient costs in a reasonable, transparent and well-founded manner, including expenses arising from objective factors that have not been fully calculated in electricity prices.

According to the audited consolidated financial report for 2024, EVN's consolidated revenue last year reached VND580,537 billion, an increase of nearly 16% compared to 2023. Of which, revenue from electricity sales last year reached more than VND572,936 billion, accounting for more than 98%.

EVN recorded a profit after tax of more than VND8,237 billion, while in 2023 it lost VND26,772 billion. Of which, the profit after tax of the parent company's shareholders was more than VND7,222 billion. However, as of the end of last year, this "giant" had an accumulated loss of more than VND38,688 billion.

Last year, EVN adjusted its electricity price up 4.8% on October 11, 2024. The most recent electricity price increase by EVN was in May this year. At that time, EVN announced that the average retail electricity price would increase from VND2,103.11 to VND2,204.07 per kWh (excluding VAT), equivalent to an increase of 4.8%.

Source: https://dantri.com.vn/kinh-doanh/evn-de-xuat-dua-khoan-lo-hon-44700-ty-dong-vao-chi-phi-tinh-gia-dien-20250817010014240.htm