EVN: Amending Decree 72 to ensure financial balance and investment in new power sources

EVN: Sửa Nghị định 72 để bảo đảm cân đối tài chính và đầu tư nguồn điện mới- Ảnh 1. — EVN said that the proposal to amend and supplement Decree No. 72/2025/ND-CP is necessary to offset reasonable costs, preserve state capital in enterprises and ensure investment resources for key power projects in the coming time - Illustrative photo

44,000 billion VND in costs not fully included in electricity prices

According to EVN, in the period of 2022 - 2023, there are about 44,000 billion VND of costs that have not been calculated or have not been fully calculated in the electricity price adjustments. This is the main reason why the revenue from electricity sales is not enough to cover input costs, directly affecting the financial balance and the ability to invest in expansion of the group.

In the electricity cost structure, electricity generation costs account for 83%, the remaining 17% is for transmission, distribution, retail and industry management. In the context of the sharp increase in coal, oil, gas fuel prices and foreign exchange rates due to the impact of the Russia-Ukraine conflict and the post-pandemic recovery period, electricity generation costs have increased sharply. Although hydropower is a cheap source, its proportion has decreased, forcing EVN to buy more from high-priced thermal power sources.

In 2022, the cost of electricity production and business is 2,032.26 VND/kWh (of which the cost of electricity generation according to commercial electricity is 1,698.45 VND/kWh, equal to 83.57% of the cost) while the average commercial electricity selling price is 1,882.73 VND/kWh. Thus, the electricity selling price is 149.53 VND/kWh lower than the electricity cost.

In 2023, the cost of electricity production and business is 2,088.90 VND/kWh (of which the cost of electricity generation according to commercial electricity is 1,744.12 VND/kWh, equal to 83.49% of the cost) while the average commercial electricity selling price is 1,953.57 VND/kWh. Thus, the electricity selling price is 135.33 VND/kWh lower than the electricity cost.

After calculating and synthesizing related data, the costs that have not been calculated or have not been fully calculated in the electricity price adjustments in the 2022-2023 period are about 44,000 billion VND.

Huge capital needs for a series of key projects

EVN said that in the coming time, the Group will have to implement many large-scale, important and urgent projects such as Ninh Thuan 1 Nuclear Power Plant, Quang Trach 2 and 3 LNG Power Plants, Bac Ai Pumped Storage Hydropower Plant, expanded hydropower projects and offshore wind power. The capital demand to implement these projects is very large.

Pursuant to the Electricity Law 2024 and the Law on Management and Investment of State Capital in Enterprises 2025, EVN is responsible for preserving and developing capital. Therefore, allowing the calculation of costs that have not been fully accounted for in the next electricity price adjustments is necessary and in accordance with current legal regulations.

EVN added that despite many difficulties, the Group and its member units have synchronously implemented many solutions to reduce regular costs and major repair costs by at least 10%. At the same time, in the period of 2020 - 2021, EVN has reduced electricity prices 5 times, supporting customers affected by the COVID-19 pandemic with a total amount of more than 15,200 billion VND.

In addition, EVN still ensures electricity supply to remote areas and islands, even though production costs are many times higher than the national average selling price. In 2023 alone, losses due to the difference between selling prices and electricity production costs in island districts amounted to VND428 billion.

Vietnam's electricity prices are at the regional average.

According to international statistics, Vietnam's retail electricity price is currently around 7.8 cents/kWh, ranking 42nd out of 144 countries and territories. Compared to the region, Vietnam's electricity price is higher than Laos and Malaysia, but lower than many countries such as Indonesia (9.2 cents), Thailand (12.7 cents), the Philippines (20.3 cents) and Singapore (23 cents).

EVN emphasized that amending Decree 72/2025/ND-CP not only aims to resolve immediate financial difficulties but also ensures resources to implement key power projects, meeting electricity demand for socio -economic development, while fulfilling commitments on energy transition and national energy security.

Anh Tho

Source: https://baochinhphu.vn/evn-sua-nghi-dinh-72-de-bao-dam-can-doi-tai-chinh-va-dau-tu-nguon-dien-moi-102250909170456946.htm