On the afternoon of October 11, Vietnam Electricity Group (EVN) held a press conference to discuss changes in retail electricity prices in 2024. Accordingly, the average electricity price will increase from VND 2,006.79 to VND 2,103.1159 per kWh (excluding VAT). This decision has been approved in principle by the Government and the Ministry of Industry and Trade.
This is the first time in 2024 that electricity prices have been adjusted. However, in 2023, electricity prices have increased twice in a row in May and November.
According to the results of the inspection of electricity production and business costs of Vietnam Electricity Group (EVN) announced by the Ministry of Industry and Trade, the total cost of electricity production and business in 2023 is VND 528,604.24 billion, including electricity production and business costs of power generation, power transmission, electricity distribution - retail and auxiliary - industry management, an increase of VND 35,338.94 billion (equivalent to an increase of 7.16%) compared to 2022.
The cost of electricity production and business in 2023 is VND 2,088.90/kWh, an increase of 2.79% compared to 2022.
The above figures show that EVN's electricity production and business results in 2023 were a loss of VND 34,244.96 billion. However, the income from activities related to electricity production and business in 2023 was VND 12,423.40 billion. As a result, the loss decreased to VND 21,821.56 billion (excluding income from other production).
According to the inspection results, the amounts not yet accounted for in the cost of electricity production and business in 2023 are about VND 18,032.07 billion, including the remaining exchange rate difference implemented according to the electricity purchase and sale contracts of the remaining power generation units in 2019 and the exchange rate difference according to the electricity purchase and sale contracts from 2020-2023.
Mr. Nguyen The Huu - Deputy Director of the Ministry of Industry and Trade said that the inspection process showed that last year, input fuel prices for electricity production including coal, oil, gas, and foreign exchange rates all increased due to fluctuations in the global socio-political situation along with the impact of the El Nino phenomenon, causing the power source structure to fluctuate in an unfavorable direction.
"That means cheap electricity sources like hydropower are decreasing while expensive electricity sources like coal and oil are increasing.
Along with that, Vietnam's electricity demand is increasing, approximately 10-11%, leading to, in addition to cheap electricity sources that have been used up, we continue to use additional sources with higher prices. All of these factors lead to high electricity generation costs," Mr. Huu stated.
