Experts have raised concerns over the Vietnam Electricity Group (EVN)’s proposal to include over VND 44 trillion (USD 1.76 billion) in losses into the average retail electricity price, emphasizing the need to scrutinize the legitimacy and structure of the costs involved.

Speaking to VietNamNet, energy specialist Ha Dang Son from the Center for Energy and Green Growth Research noted that the draft decree amending Decree 72 has clarified the types of expenses that may be included in the electricity pricing structure.

The amended decree introduces item g1, covering direct expenses for electricity production and supply that had not previously been fully recovered in retail prices. These are to be determined based on business results (excluding profits from other activities, if any) and independently audited financial statements from 2022 onward.

Additionally, item g2 incorporates "unallocated foreign exchange rate differences" and those not yet recognized or settled with power plants as per their purchase agreements.

Ha Dang Son emphasized that incorporating abnormal costs such as spikes in fuel prices for electricity generation (which surged in 2022 and led to losses when generation costs exceeded retail prices) is reasonable.

However, the expert pointed out that EVN’s audited financial statements for 2022, 2023, and 2024, as published on its website, do not detail the specific cost components of the reported loss.

This raises concerns that the losses may include unreasonable costs resulting from inefficient management and operations in power generation, transmission, and distribution.

"This could lead to unjustified cost allocations within the electricity price, stirring public backlash," Ha Dang Son warned.

Therefore, before approving the inclusion of EVN’s VND 44.792 trillion (USD 1.76 billion) loss into the average electricity price, Ha Dang Son recommended that EVN be required to provide a detailed breakdown of the loss and that only reasonable and verifiable costs be accepted.

Previously, VietNamNet reported that the Ministry of Industry and Trade submitted a proposal to the government regarding a draft decree amending Decree 72/2025/NĐ-CP, which governs the mechanism and timeline for adjusting the average retail electricity price.

In the proposal, the ministry referenced EVN’s report indicating that geopolitical challenges and rising power purchase costs in 2022-2023 caused severe financial difficulties, resulting in a cumulative loss of approximately VND 50.029 trillion. By the end of 2024, the parent company’s losses stood at VND 44.792 trillion (USD 1.76 billion), significantly reducing state capital and failing to preserve public investment in the enterprise.

EVN has proposed that the Minister of Industry and Trade submit to the Prime Minister a request allowing the accumulated losses to be counted as costs factored into the average electricity price.

Additionally, EVN suggested including other under-recovered costs related to production and supply, based on annual audited reports from 2022 onward. It also recommended that the Ministry of Industry and Trade consider and, if necessary, seek input from the Ministry of Finance on the proposed cost allocation plans.

Further, foreign exchange rate differences - both pending allocation and unpaid under electricity purchase agreements - are also on the list of proposed costs to be accounted for.

As of now, the average retail electricity price is VND 2,204.07 per kWh (about USD 0.086), following a 4.8% increase that took effect on May 10, 2025.

Tam An