According to EVN’s latest report, this group estimated a total loss of up to VND31,360 billion in 2022. The group said that in 2022, major fluctuations in the world made a great impact on electricity production while investment and construction of power projects faced difficulties in terms of policy mechanisms and capital allocation. 

In addition, input costs increased, but the retail price of electricity has not been adjusted for nearly four years, which is much lower than the cost.

Although it implemented measures to reduce expenditures of VND33,445 billion, these internal solutions could not help offset the cost of buying electricity due to the sudden increase in fuel prices.

“EVN has reported the issue to the Government, the Committee for Management of State Capital at Enterprises and relevant ministries and agencies and asked for permission to adjust electricity prices to reduce difficulties and balance EVN's finances in the coming years,” EVN said.

Nguyen Hoang Anh, Chairman of the Committee for the Management of State Capital at Enterprises, said: "The core and long-term solution is to increase electricity prices to ensure financial balance in 2022 and the following years for EVN."

He noted that EVN must draw many lessons from experience. “Proactively offering internal solutions and optimizing internal governance of the corporation must be a top priority because this is the core thing that plays a key role in helping EVN reduce costs and improve production and business efficiency," he said.

In addition, the development of operation plans for 2022 was slow and EVN did not  forecast in a timely manner fluctuations and factors affecting input costs of electricity production and business, leading to a gap between the data submitted to the Management of State Capital at Enterprises, which was used to consider  approval of EVN’s annual plan and the actual situation. 

EVN’s 5-year production, business and development investment plan has not been completed to be submitted to competent authorities for approval.

In this regard, the Management of State Capital at Enterprises has directed EVN to review and update the plan data, recommend many measures for EVN to promptly adapt to the actual situation; and proactively report EVN’s situation and propose measures to the Prime Minister.

"Among solutions, the core and long-term one is to increase electricity prices to ensure financial balance in 2022 and the following years for EVN," the official said.

Luong Bang