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 proposal to the Government regarding the draft Decree amending and supplementing Decree 72/2025 on the mechanism and time for adjusting the average retail electricity price.

The Ministry of Industry and Trade stated that, according to EVN's report, due to the geopolitical situation, the high cost of electricity purchases during the 2022-2023 period caused many difficulties for the company, resulting in accumulated losses of approximately VND 50,029 billion. By the end of 2024, the accumulated losses of the parent company EVN still amounted to approximately VND 44,792 billion.

This reduces state investment in EVN and fails to preserve state capital in the enterprise. Therefore, if this is not factored into electricity prices, it will not adequately compensate for the reduced state investment from the previous period.

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

In addition, other costs not fully included in electricity prices are also proposed for allocation, including costs directly related to electricity production and supply, as determined by annual audited financial statements from 2022 onwards. EVN proposes a plan for allocating these costs, reporting it to the Ministry of Industry and Trade for consideration, and will seek the opinion of the Ministry of Finance if necessary.

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

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

However, the regulatory agency believes that in practice, there are still some aspects that need to be reviewed and adjusted to ensure that all reasonable and legitimate costs are included in the calculation and adjustment of retail electricity prices.

Therefore, the Ministry of Industry and Trade stated that EVN proposed amendments and additions to allow the recovery of direct costs for electricity production and supply that were not fully accounted for or compensated in the previous average retail electricity price, based on the published electricity production and business costs or annual audited financial statements.

"Retail electricity prices need to be addressed promptly to help electricity companies recover their costs, contributing to the preservation and development of business capital," the draft proposal from the Ministry of Industry and Trade clearly states.

The drafting agency stated that the draft decree aims to amend and supplement regulations to ensure that electricity companies can recover all reasonable, transparent, and justifiable costs, including those arising from objective factors that were not fully accounted for in electricity prices.

According to the audited consolidated financial report for 2024, EVN's consolidated revenue last year reached VND 580,537 billion, an increase of nearly 16% compared to 2023. Of this, revenue from electricity sales last year reached over VND 572,936 billion, accounting for more than 98%.

EVN recorded a net profit of over 8,237 billion VND, compared to a loss of 26,772 billion VND in 2023. Of this, the net profit attributable to shareholders of the parent company was over 7,222 billion VND. However, as of the end of last year, this "giant" had accumulated losses of over 38,688 billion VND.

Over the past year, EVN adjusted electricity prices upwards on October 11, 2024, by 4.8%. The most recent electricity price increase by EVN was in May of this year. At that time, EVN announced an increase in the average retail electricity price from VND 2,103.11 to VND 2,204.07 per kWh (excluding VAT), equivalent to a 4.8% increase.

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