EVN: Amending Decree 72 to ensure financial balance and investment in new power sources

EVN: Sửa Nghị định 72 để bảo đảm cân đối tài chính và đầu tư nguồn điện mới- Ảnh 1. — EVN stated that the proposed amendments and additions to Decree No. 72/2025/ND-CP are necessary to offset reasonable costs, preserve state capital in enterprises, and ensure investment resources for key power projects in the coming period. - Illustration image

44 trillion VND in costs have not been fully included in electricity prices.

According to EVN, in the period of 2022-2023, approximately 44,000 billion VND in costs were not included or were not fully included in electricity price adjustments. This is the main reason why electricity sales revenue has not been sufficient to cover input costs, directly affecting the financial balance and the group's ability to invest in expansion.

In the electricity cost structure, power generation costs account for 83%, while the remaining 17% is attributed to transmission, distribution, retail, and industry management. Amidst soaring fuel prices (coal, oil, and gas) and exchange rates due to the Russia-Ukraine conflict and the post-pandemic recovery, power generation costs have increased significantly. Although hydropower is a cheaper source, its proportion has decreased, forcing EVN to purchase more from higher-cost thermal power sources.

In 2022, the cost of electricity production and business was 2,032.26 VND/kWh (of which the cost of electricity generation per unit of commercial electricity was 1,698.45 VND/kWh, equivalent to 83.57% of the cost), while the average selling price of commercial electricity was 1,882.73 VND/kWh. Thus, the selling price of electricity was 149.53 VND/kWh lower than the cost of electricity.

In 2023, the cost of electricity production and business was 2,088.90 VND/kWh (of which the cost of electricity generation per unit of commercial electricity was 1,744.12 VND/kWh, equivalent to 83.49% of the cost), while the average selling price of commercial electricity was 1,953.57 VND/kWh. Thus, the selling price of electricity was 135.33 VND/kWh lower than the cost of electricity.

After calculating and compiling all relevant data, the costs that were not included or not fully included in the electricity price adjustments for the 2022-2023 period amounted to approximately 44,000 billion VND.

Large capital requirements for a series of key projects.

EVN stated that in the coming period, the Group will have to implement many large-scale, important, and urgent projects such as the Ninh Thuan 1 Nuclear Power Plant, the Quang Trach 2 and 3 LNG Power Plants, the Bac Ai Pumped Storage Hydropower Plant, and other hydropower expansion and offshore wind power projects. The capital requirements for implementing these projects are very large.

Based on the Electricity Law 2024 and the Law on State Capital Management and Investment in Enterprises 2025, EVN is responsible for preserving and developing capital. Therefore, allowing the inclusion of costs not fully accounted for in subsequent electricity price adjustments is necessary and consistent with current legal regulations.

EVN further stated that, despite facing many difficulties, the Group and its member units have implemented many comprehensive solutions to reduce recurring costs and major repair costs by at least 10%. At the same time, during the 2020-2021 period, EVN reduced electricity prices five times, supporting customers affected by the COVID-19 pandemic with a total amount of over 15,200 billion VND.

In addition, EVN continues to ensure electricity supply to remote areas and islands, despite production costs being many times higher than the national average selling price. In 2023 alone, losses due to the difference between the selling price and the cost of electricity production in island districts amounted to 428 billion VND.

Electricity prices in Vietnam are at the regional average.

According to international statistics, the retail price of electricity for household use in Vietnam is currently around 7.8 cents/kWh, ranking 42nd out of 144 countries and territories. Compared to the region, Vietnam's electricity price is higher than Laos and Malaysia, but much lower than many countries such as Indonesia (9.2 cents), Thailand (12.7 cents), the Philippines (20.3 cents), and Singapore (23 cents).

EVN emphasized that amending Decree 72/2025/ND-CP aims not only to alleviate immediate financial difficulties but also to ensure resources for implementing key power projects, meeting the electricity demand for socio -economic development, and fulfilling commitments on energy transition and national energy security.

Anh Tho

Source: https://baochinhphu.vn/evn-sua-nghi-dinh-72-de-bao-dam-can-doi-tai-chinh-and-dau-tu-nguon-dien-moi-102250909170456946.htm