On October 10, the Ministry of Industry and Trade announced the results of the inspection of electricity production and business costs in 2023 of Vietnam Electricity Group (EVN).

According to the inspection results, the total cost of electricity production and business in 2023 is VND 528,604 billion, including electricity production and business costs of power generation, power transmission, electricity distribution - retail and industry support - management, an increase of VND 35,338 billion (equivalent to an increase of 7.16%) compared to 2022.

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Power generation costs in 2023 increased by VND 29,112.84 billion compared to 2022. Photo: Hoang Giam

The cost of electricity production and business in 2023 is VND 2,088.9/kWh, an increase of 2.79% compared to 2022 (in which the revenues of EVN and its member units from liquidation, sale of fixed assets and recovered materials, income from electricity pole rental activities have been deducted from the production and business costs of EVN and its member units).

The total cost of power generation is 441,356 billion VND, corresponding to the cost of power generation according to commercial electricity of 1,744.12 VND/kWh.

"Compared to 2022, the cost of power generation in 2023 increased by VND 29,112 billion," the inspection results showed.

The total cost of electricity transmission is 18,879.15 billion VND, corresponding to the cost of electricity transmission according to commercial electricity of 74.61 VND/kWh.

The total cost of electricity distribution and retail is 66,773.11 billion VND, corresponding to the cost of electricity distribution and retail according to commercial electricity of 263.87 VND/kWh. The total cost of auxiliary - industry management is 1,595.6 billion VND, corresponding to the cost of auxiliary - industry management according to commercial electricity of 6.31 VND/kWh.

The total compensation for electricity production and business costs in island communes and districts not yet connected to the national grid is 428.54 billion VND.

According to the Ministry of Industry and Trade, commercial electricity output in 2023 is 253.05 billion kWh, an increase of 4.26% compared to 2022.

Revenue from commercial electricity sales in 2023 is VND 494,359 billion, an increase of 8.18% compared to 2022. The average commercial electricity selling price is VND 1,953.57/kWh, an increase of 3.76% compared to 2022.

EVN's electricity production and business results in 2023 were a loss of VND 34,244 billion. Revenue from activities related to electricity production and business in 2023 was VND 12,423 billion.

In total, EVN's electricity production and business activities in 2023 and activities related to electricity production and business in 2023 (income from financial activities and from selling reactive power) lost more than VND 21,821 billion (excluding income from other production).

According to the inspection results, the amounts not yet accounted for in the cost of electricity production and business in 2023 are about 18,032 billion VND, including the remaining exchange rate difference implemented according to the electricity purchase and sale contracts of the remaining power generation units in 2019 and the exchange rate difference according to the electricity purchase and sale contracts from 2020 - 2023.

The Ministry of Industry and Trade said: The inspection of electricity production and business costs in each year is based on documents provided by EVN and its member units, including: Report on electricity production and business activities audited by Deloitte Vietnam Co., Ltd.; consolidated financial statements after audit of EVN, financial statements audited by independent auditors of EVN's parent company and its member units; electricity purchase and sale contracts between EVN and power generation units; separation of costs for power generation, power transmission, electricity distribution - retail, ancillary and industry management.