Worried about financial imbalance, EVN proposes to continue increasing electricity prices

That is the content of EVN's proposal stated in the discussion shared at the workshop: Mechanisms, policies, solutions to ensure sustainable energy development with a vision to 2050, organized by the Vietnam Energy Association on July 28.

With financial difficulties, EVN proposes to continue adjusting electricity prices

According to EVN representative, in 2023, this group will continue to face many difficulties and challenges in production and business activities due to high world fuel prices (coal, oil, gas) and USD exchange rate.

Domestic coal suppliers ( Vietnam National Coal and Mineral Industries Group , Dong Bac Corporation) are expected to supply only high-priced blended coal (coal mixed with domestic and imported coal), limiting the supply of domestically produced coal. In addition, low-cost power sources such as hydropower have a decreasing proportion compared to previous years.

EVN representative said that if production and business activities continue to suffer losses, EVN will face many difficulties this year and the following years.

Specifically, if EVN pays the electricity bill according to the contract, from now until December, it will lack cash flow to ensure payment for the cost of purchasing coal, oil, and gas for electricity production. EVN still owes money to many power generation units.

"In the coming time, EVN may not have enough money to pay for electricity purchases for power generation units, affecting the continuous operation of power plants and thus affecting the supply of sufficient electricity," said an EVN representative.

According to EVN representative, in the period of 2020 - 2022, this group will cut major repair costs by 10 - 50% due to unbalanced capital sources. This year, if EVN continues to cut these costs, it will greatly affect the safety of the power system.

EVN will face many difficulties in mobilizing capital, balancing capital sources to invest in power projects to ensure safe operation and supply electricity for the following years. Specifically, this year, EVN plans to invest in construction of about 94,860 billion VND. However, with the loss in production and business results and the inability to repay debts on time, banks and credit institutions will have more difficulty in approving loans and loan limits for EVN.

In addition, EVN's financial difficulties will affect the salaries of nearly 90,000 employees at EVN and its member units who are making efforts to produce and do business to ensure sufficient, stable and continuous electricity supply for the country's socio-economic development.

Sharing at the workshop, EVN representative suggested that the Vietnam Energy Association recommend the Government, Prime Minister, ministries and branches to allow EVN to continue to adjust retail electricity prices soon in the coming time to ensure balanced production and business results.

In order to have a basis for considering the next electricity price adjustments this year, the electricity price increases should not be sudden and have a roadmap, EVN recommends that the Government consider amending and replacing Decision No. 24/2017/QE TTg.

EVN proposed that the Government direct the State Bank of Vietnam to provide the group with interest-free loans to pay electricity bills for power generation units, ensuring timely purchase of raw materials for power generation.

EVN also proposed that the Government and ministries and branches allow EVN to temporarily pay for electricity purchases at a level suitable to EVN's financial capacity to power generation units until the retail electricity price is adjusted promptly and fully reflects costs; accept EVN's losses in electricity production and business in 2022 and 2023 as "due to policy implementation".

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