Ministry of Industry and Trade: The allocation of EVN's loss has 'small impact', expected to increase electricity price by only 2-5%

evn - Ảnh 1. — Electricity prices may be adjusted up by 2-5% next October - Photo: QUANG DINH

According to the draft revised and supplemented decree submitted by the Ministry of Industry and Trade for appraisal, the retail electricity price is reflected and adjusted promptly according to actual fluctuations in input and compensation parameters.

Reasonable and valid costs with reasonable profits to preserve and develop the business capital of the enterprise in accordance with the socio -economic conditions of each period and level of the competitive electricity market.

Amend regulations because of a series of uncompensated costs?

In practice, the Ministry of Industry and Trade said that the Government has issued Decree 72/2025 and Vietnam Electricity Group (EVN) has implemented the construction and calculation of the average retail electricity price according to regulations on adjusting the average retail electricity price in 2025.

However, there are still some direct costs for electricity production and supply that have not been calculated and fully offset in the average retail electricity price, leading to EVN's losses in the 2022-2023 period.

In order to minimize the impact of the COVID-19 pandemic on social security and the country's economic development, the electricity price in 2022 will remain unchanged without any increase when input parameters such as imported coal prices increase due to the Russia-Ukraine war. The electricity price in 2023 will be adjusted to increase but at a moderate level, so the adjusted electricity price is still much lower than the electricity price that needs to be adjusted. Therefore, the increase in electricity price has not yet fully recovered the incurred costs.

According to EVN's report, the accumulated loss for the two years 2022-2023 is about 50,029 billion VND. In 2024, although EVN makes a profit, the accumulated loss of the parent company - EVN is about 44,792 billion USD.

The Ministry of Industry and Trade said that according to the provisions of the Law on Corporate Income Tax, in case an enterprise makes a loss, the loss transfer period must not exceed 5 consecutive years from the year the loss arises.

This means that the loss in 2022 will only be considered for transfer until the end of 2027 and if EVN's business results in 2023-2027 are profitable, it will be transferred to offset the loss in 2022. However, because EVN continues to lose in 2023, not only will the loss in 2023 not be transferred to 2023, but it will also incur additional losses.

It is expected that the loss of 2023 will be considered for loss transfer and allocation until the end of 2028 in case EVN's production and business results in 2023-2027 must have a profit large enough to offset the loss of the previous year 2022 and 2023.

Therefore, EVN believes that retail electricity prices need to be compensated promptly to recover enough costs, contribute to preserving and developing business capital of enterprises, and reduce accumulated losses in EVN's production and business plans.

This will help EVN have resources to invest in Ninh Thuan nuclear power projects, Quang Trach power plant cluster, offshore wind power plants, expanded hydropower plants and power sources assigned for investment by the Government and ministries.

Loss allocation has a small impact

In the draft amendment to Decree 72, the Ministry of Industry and Trade proposed adding regulations related to other costs not included in electricity prices, which are costs that are allowed to be calculated but not fully calculated, and will be allocated to the annual retail electricity price.

Assessing the impacts of the decree amendment, the Ministry of Industry and Trade said that in the context of the first 7 months of this year, the hydrological situation was favorable, helping EVN's production and business results to be more positive.

Therefore, the addition of regulations on other expenses related to EVN's losses in 2022-2023 to the draft decree, if issued, will not affect the current average retail electricity price after calculating and updating the allocation of other expenses.

In case of allocation, the level of impact is considered small, possibly in the range of 2% to 5% under EVN's authority.

It is expected that EVN will calculate that if the retail electricity price is adjusted in October 2025, the CPI will increase by about 0.03 percentage points. Meanwhile, adjusting the electricity price by a small margin will help ensure the rights and interests of power units and customers.

According to plan, the expected time to issue this decree is September 2025.

NGOC AN

Source: https://tuoitre.vn/bo-cong-thuong-viec-phan-bo-khoan-lo-cua-evn-anh-huong-nho-du-kien-chi-tang-2-5-gia-dien-20250907105606515.htm