EVN further explains the reason for the trillion-VND loss.

27/09/2023 07:42 V. Hang Print article

ANTD.VN - According to Mr. Nguyen Xuan Nam, Deputy General Director of Vietnam Electricity Group (EVN), the cost of bringing electricity to remote areas can reach approximately 7,000 VND/kWh, but EVN's average electricity price in all areas is maintained at around 1,900 VND/kWh. EVN is having to perform many tasks simultaneously, thus incurring losses.

Mr. Nguyen Xuan Nam spoke about EVN's trillion-dong losses.

Speaking at the recent seminar on State Capital Management in Enterprises: "Looking Back and Towards," Mr. Nguyen Xuan Nam stated that, as a state-owned economic group, EVN has been entrusted with many tasks and objectives by the Party, Government, and State; among which, EVN's highest responsibility is to supply electricity to the country, serving socio-economic development and the lives of the people, including fulfilling its social responsibility by maintaining stable retail electricity prices as directed by the Government.

For example, Mr. Nguyen Xuan Nam stated that for EVN to bring electricity to remote areas, border regions, and islands, the cost of electricity production reaches approximately 7,000 VND/kWh, but the price EVN sells electricity to these areas currently remains at around 1,900 VND/kWh, in accordance with the policies of the Party and the State.

According to Mr. Nguyen Xuan Nam, as a state-owned enterprise, EVN's operations are not simply about profit or loss, but also about fulfilling social welfare tasks and serving as a tool for macroeconomic stability. Therefore, the fact that EVN sells electricity at a much lower price than the production cost in remote, border, and island areas is also fulfilling a political mission with the policy objective of "leaving no one behind."

In 2022, due to global instability, the prices of commodities such as coal, gas, and oil surged dramatically. For example, at one point, the price of coal increased fivefold, reaching $400 per ton, and the price of oil doubled, while electricity purchase prices accounted for 84% of the electricity price structure.

Therefore, the high prices of coal and gas have a significant impact on the cost of electricity production, making it difficult for EVN to balance its finances. Entering 2023, although the prices of coal, gas, and oil have cooled down, they remain at a high level.

After four years, although retail electricity prices have been adjusted upwards by an average of 3%, this has only partially resolved the financial difficulties, and EVN continues to face many challenges in balancing its finances.

According to Mr. Nguyen Xuan Nam, in the future, electricity pricing will be legalized and will closely approximate market prices, so EVN hopes to alleviate its financial difficulties.

Last year, EVN incurred losses exceeding 26,200 billion VND. A recent report from the Ministry of Planning and Investment indicated that in the first half of this year, the electricity giant recorded losses of approximately 35,400 billion VND, but by August, these losses had decreased to 28,700 billion VND.

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