The Ministry of Industry and Trade (MOIT) has reported that in 2022, Electricity of Vietnam (EVN) took a loss of VND26.235 trillion, while the official electricity generation cost exceeded VND2,000 per kwh, higher than the current average electricity retail price by VND167.82.
The ministry late last week held a press conference announcing the results of the inspection of EVN’s electricity production costs in 2021 and 2022.
According to Tran Hong Phuong from the Electricity Regulatory Authority of Vietnam (ERAV) , the total cost of the electricity generation was VND412.243 trillion, which meant a cost price of merchandise electricity generation of VND1,698.45 per kwh.
The total cost of the electricity generation in 2022 was VND72.855 trillion higher than 2021.
The total cost of the electricity transmission was VND16.854 trillion, which meant the cost price of merchandise electricity transmission was VND69.44 per kwh.
The figures were VND62.543 trillion and VND257.68 per kwh, respectively, for electricity distribution and retail.
Meanwhile, the total support and management cost was VND1.623.41 billion, or VND 6.69 per kwh.
As such, the electricity production cost in 2022 was VND2,032.26 per kwh, or VND167.82 per kwh higher than the current average price (VND1,864.44 per kwh).
The production cost in 2022 was 9.27 percent higher than 2021 (the production cost in 2021 was VND1,859.9 per kwh, an increase of 1,84 percent compared with 2020).
In 2022 alone, EVN incurred a loss of VND36,294.15 billion from electricity production and business.
However, EVN had other sources of income, including activities related to electricity production and business, totaling VND10,058.36 billion.
So, EVN’s total activities of electricity production and business, and related activities (income from financial investment activities and income from reactive power) in 2022 was minus VND26,235.78 billion, not including income from other production.
The loss did not include exchange rate differences. There were some items which have not been taken into account.
At the meeting, Tran Viet Hoa, head of ERAV, left the price increase open.
Citing the PM’s Decision 24/2017 on the mechanism on adjusting retail prices, Hoa said when the input factors fluctuate by 3 percent or more, electricity prices will be adjusted.
If the average price increases by 3-5 percent, the increase will be determined by EVN.
If the price increases from 5 percent to below 10 percent, the increase will be decided by MOIT, and if the price increase is 10 percent or higher, this will be reported to the government.
In related news, EVN has failed to negotiate prices for wind and solar power prior to March 31 as requested by MOIT.
EVN told VietNamNet that by March 29, only four out of 85 wind power developers had sent documents requesting to negotiate electricity prices.