In a recent interview with VietNamNet’s correspondent, energy expert Ha Dang Son from the Center for Energy and Green Growth Research shared his insights on EVN’s proposal to include their reported loss of over 44,000 billion VND in the average electricity selling price. Mr. Son acknowledged that the draft decree amending and supplementing Decree 72 has clarified the types of costs that can be factored into electricity prices.
Among the changes, item g1 now includes costs directly related to electricity production and supply that were previously not fully covered in retail prices.
These costs are determined based on business results (excluding profits from other activities, if any) and audited financial statements from 2022 onwards.
Additionally, item g2 now covers unrealized exchange rate differences that have not been allocated or paid to power plants as per contractual commitments.
Energy expert Ha Dang Son suggested that only reasonable costs should be approved for inclusion in the average retail electricity price. Photo: Hoang Giam |
Mr. Son agreed that it is appropriate to include extraordinary costs, such as the fuel price difference for power generation (which increased significantly in 2022 and led to losses due to higher production costs than retail prices), in the electricity prices.
However, he noted that the audited financial statements for 2022, 2023, and 2024, published on EVN’s website, do not provide a detailed breakdown of the components of this loss.
This lack of transparency raises concerns about the potential inclusion of inappropriate costs resulting from suboptimal management and production, transmission, and distribution processes.
“This could lead to an unfair allocation of costs in electricity prices and generate negative public sentiment towards the proposal,” Mr. Son cautioned.
Therefore, before incorporating the reported loss of over 44,000 billion VND into the average electricity selling price, Mr. Son recommended that EVN be required to provide a detailed breakdown of the loss components. Only reasonable costs should be approved for inclusion in the average retail electricity price, rather than accepting the entire loss as reported in the audited financial statements.
Previously, VietNamNet reported on the Ministry of Industry and Trade’s submission to the Government regarding the draft decree amending and supplementing Decree 72/2025/ND-CP dated March 28, 2025, on the mechanism and timing of adjusting the average electricity selling price.
Notably, the submission cited EVN’s report, which attributed the company’s difficulties to the impact of geopolitical tensions and the resulting increase in power purchase costs during 2022-2023. This led to a cumulative loss of approximately 50,029 billion VND. By the end of 2024, the cumulative loss of the EVN parent company remained at approximately 44,792 billion VND, eroding state investment and failing to preserve state capital in the enterprise.
Consequently, EVN proposed that the Minister of Industry and Trade report to the Prime Minister for permission to include this cumulative loss as an allowable cost in the calculation of the average electricity selling price.
Additionally, EVN suggested allocating other previously unaccounted costs, such as those directly related to electricity production and supply, based on audited financial statements from 2022 onwards. They proposed a calculation method and requested the Ministry of Industry and Trade’s consideration, with the option to seek input from the Ministry of Finance if necessary.
Furthermore, unrealized exchange rate differences in revaluation and those not yet paid to power plants according to power purchase agreements were also mentioned.
Currently, the average electricity selling price is 2,204.07 VND per kWh (excluding VAT), following a 4.8% increase on May 10, 2025.
EVN proposes to include a cumulative loss of nearly 45 trillion VND in electricity prices
Tam An
– 19:16 17/08/2025
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