Putting losses into electricity prices: Many ministries and branches suggest careful consideration

(Dan Tri) - The loss of more than 44,700 billion VND of EVN is being proposed to be included in the electricity price. Many ministries and branches believe that this needs to be carefully considered to avoid impacting production, consumption and macroeconomic stability.

In the document reviewing the third draft of the Decree amending and supplementing Decree 72/2025 on the mechanism and time for adjusting average retail electricity prices, the most notable issue is the accumulated loss of nearly VND 45,000 billion of Vietnam Electricity Group (EVN).

According to the draft, the Ministry of Industry and Trade proposed allowing EVN to calculate previously unaccounted costs into electricity prices, creating a legal basis to recover losses from previous years.

Most opinions agree that the loss of nearly 45,000 billion VND is a serious issue, greatly affecting the electricity price policy as well as the interests of consumers. Therefore, the calculation and allocation need to be clarified, transparent and closely monitored by management agencies.

Request clarification of the basis and agency for determining total costs

Power workers construct the 500kV line circuit 3 Quang Trach - Pho Noi (Photo: Nam Anh).

In its comments, the Ministry of National Defense clearly requested the Ministry of Industry and Trade to specifically identify the causes of the above losses, clearly distinguish which costs are directly related to electricity production and supply activities, and which are costs outside of core activities. This is to ensure that the report sent to the Government has a solid and transparent basis and avoids putting a burden on electricity prices.

The Ministry of Finance also has a similar view, emphasizing that the handling of accumulated losses must strictly comply with the pricing principles and regulations in the Electricity Law 2024. The Ministry requested the Ministry of Industry and Trade to direct EVN to separate losses from implementing social security policies from losses arising from business activities, and clarify if there are losses from investments outside the industry.

In addition, the Ministry of Finance requested an assessment of the impact of electricity price adjustments on people and businesses, thereby developing solutions to minimize negative consequences.

The Vietnam Chamber of Commerce and Industry (VCCI) also expressed a cautious view. VCCI believes that it is necessary to clearly identify the competent authority and legal basis for calculating the total cost included in the electricity price. If the addition of previously uncalculated costs is not transparent, the risk of creating conflicting public opinion is very high.

Vietnam Electricity Association recommends that the drafting agency clearly stipulate the process for handling costs arising from subjective factors or factors beyond EVN's control, as well as the adjustment mechanism when those factors cease.

The Vietnam Association for Consumer Protection warned that it is necessary to carefully consider including the cost from 2022 into the electricity price from 2025 onwards, because this could directly affect the living costs and production and business activities of people and businesses.

From an expert perspective, Dr. Ha Dang Son noted that EVN's audited financial report for the 2022-2024 period does not provide enough details on the composition of losses. If this report is used as a basis for allocation, it will lack transparency and easily cause negative reactions in society. He recommended that EVN should specifically announce each expense item and establish a periodic inspection mechanism according to Decision 05/2024.

Ministry of Industry and Trade explains the cause of loss and handling mechanism

In response to concerns from ministries and branches, the Ministry of Industry and Trade in its explanatory document dated September 3 said the main reason for EVN's accumulated losses was the policy of stabilizing electricity prices to support social security and the economy.

The units proposed to carefully consider including costs from 2022 in electricity prices from 2025 onwards, and at the same time assess the impact on people and businesses (Photo: EVN).

In 2022, although the price of imported coal – an important input for electricity production – increased sharply due to the Russia-Ukraine conflict, electricity prices were kept unchanged to reduce the impact on people and businesses in the post-Covid-19 context. In 2023, electricity prices were adjusted but at a low level, not enough to cover the costs incurred, causing losses to continue to increase.

The Ministry of Industry and Trade affirmed that it is necessary to amend Decree 72/2025 to perfect the electricity price management mechanism, creating a legal corridor for the allocation and handling of uncompensated costs.

In its explanation to VCCI and the Electricity Association, the Ministry said the draft stipulated that the cost determination was based on financial reports audited by an independent unit, ensuring objectivity. However, the Ministry also acknowledged the need for a fair and objective allocation mechanism not only for EVN but also for power plants, which have also had outstanding exchange rate difference costs since 2019.

The results of the inter-sectoral inspection announced by the Ministry of Industry and Trade also showed that the average retail price in 2022-2023 was lower than the cost price, which was the direct cause of the large loss. Part of this loss was offset by other activities, but not enough to balance it.

The Ministry of Industry and Trade emphasized that according to the Electricity Law 2024, EVN is responsible for transparently announcing annual electricity production and business costs, and coordinating with relevant agencies in assessing the macro impact when adjusting electricity prices.

On EVN's side, the group proposed to add regulations on the order of cost allocation, prioritizing expenses directly serving electricity production and supply, in order to preserve state capital and ensure stable operations.

At the same time, EVN proposed to remove the regulation requiring the Ministry of Finance's opinion when allocating expenses, on the grounds that these amounts have already been confirmed in the annual financial report and approved by the owner agency. According to Law No. 68, from this year, the approval authority belongs to EVN's Board of Members.

Source: https://dantri.com.vn/kinh-doanh/dua-lo-vao-gia-dien-nhieu-bo-nganh-de-nghi-xem-xet-can-trong-20250907183600553.htm