EVN reports record loss of 26,772 billion VND.

In 2023, despite two electricity price adjustments, EVN still recorded a net loss of over 26,772 billion VND.

Vietnam Electricity Group (EVN) has just released its audited consolidated financial report for 2023.

The report notes that the group's consolidated revenue last year reached VND 500,719 billion, an increase of approximately 8% compared to the same period in 2022. Of this, revenue from electricity sales last year reached over VND 498,436 billion, accounting for 99%.

EVN's gross profit was 13,041 billion VND, although the cost of goods sold amounted to 487,677 billion VND, still representing an increase of over 23% compared to 2022.

In 2023, EVN also recorded a sharp decrease in financial revenue to just over 4,065 billion VND, a nearly 50% decrease compared to 2022. Meanwhile, financial expenses increased to nearly 22,686 billion VND, while other expenses fluctuated slightly.

After deducting expenses, EVN recorded a net loss of over 26,772 billion VND, compared to a loss of 20,747 billion VND in 2022. For the two years 2022-2023, EVN's cumulative loss exceeded 47,519 billion VND.

In 2023, despite two electricity price adjustments, EVN still recorded a net loss of over 26,772 billion VND. Photo: EVN

The fact that EVN recorded a huge loss in 2023 has led many to worry that the likelihood of electricity price increases in 2024 is very high.

Speaking to a reporter from Lao Dong Newspaper at the Ministry of Industry and Trade 's regular press conference in late June 2024, Mr. Nguyen The Huu, Deputy Director of the Electricity Regulatory Authority (Ministry of Industry and Trade), said that before adjusting electricity prices, the Ministry of Industry and Trade had established a working group, which is currently working with Vietnam Electricity Group and other relevant parties to review and assess the input factors that make up the current electricity price. This will serve as the basis for considering whether to increase or decrease electricity prices in the future.

"Currently, the Ministry of Industry and Trade has sent a team to inspect the 2023 electricity cost of Vietnam Electricity Group (EVN) as a basis for considering and adjusting electricity prices in 2024," Mr. Huu said, adding that the inspection has not yet yielded results. Therefore, how and when electricity prices will be adjusted will depend on the inspection results.

Also at the press conference, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan stated that previously, the policy basis for considering electricity price adjustments was Decision No. 24 of 2017 by the Prime Minister . However, recently, the Prime Minister issued Decision No. 05 with many changes.

"Now we shouldn't think that electricity prices will only increase, but there will also be decreases," Mr. Tan said, adding that with the new decision, if there are sufficient grounds and factors to reduce electricity prices when input costs decrease by 1%, then the reduction will have to be implemented immediately.

Regarding price increases, according to Decision 05, if input costs cause electricity prices to increase by 3%, 5%, or more, each level of authority will review and adjust the price, but the review cycle must be every three months.

Therefore, he affirmed that when input costs and electricity prices decrease, the Ministry of Industry and Trade will monitor and consider requiring EVN to immediately reduce them. In case of an increase, a report will be submitted for consideration within the authority of EVN, the Ministry of Industry and Trade, or the Prime Minister.

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