Reasons for the loss of more than VND44,000 billion
In the Report on the issue of electricity bills in August 2025 and on the proposal to amend Decree 72/2025/ND-CP regulating the mechanism and time for adjusting average electricity prices, Vietnam Electricity Group said that in the current electricity price structure, the cost of power generation accounts for up to 83%; the remaining stages (transmission, distribution - retail, industry - auxiliary management) account for about 17% of electricity costs and tend to decrease over the years because EVN and its member units have been making efforts to save and cut regular expenses, major repair costs in the context of many financial difficulties.
In the period of 2022-2023, fuel prices for coal, oil, gas production, foreign exchange rates increased dramatically due to the influence of Russia-Ukraine geopolitical events and fuel demand in the recovery period after the COVID-19 pandemic.
Meanwhile, also during this period, due to the influence of weather and hydrology, the proportion of hydropower output decreased (ctedropower is a cheap source of electricity), so it had to be replaced by high-priced power sources. The total electricity output purchased from accounting plants under EVN Parent Company and accounting plants under EVN Power generation corporations (and joint stock companies controlled by EVNGENCO) in 2022 accounts for 46% and in 2023 accounts for 42,2% of the total system output, the rest of EVN buys electricity from partners outside EVN.
In the context of many difficulties, EVN and its member units have synchronously implemented many solutions to increase production efficiency, reduce regular costs and large repair costs (minimum 10%).
In 2022, the cost of electricity production and business is VND 2,032.26/kWh (of which the cost of electricity generation by commercial electricity is VND 1,698.45/kWh, equal to 83.57% of the cost) while the average selling price of commercial electricity is VND 1,882.73/kWh. Thus, the electricity price is 149.53 VND/kWh lower than the electricity price.
In 2023, the cost of electricity production and business is VND 2,088.90/kWh (of which the cost of electricity generation by commercial electricity is VND 1,744.12/kWh, equal to 83.49% of the cost) while the average selling price of commercial electricity is VND 1,953.57/kWh. Thus, the electricity price is 135.33 VND/kWh lower than the electricity price.
After calculating and synthesizing related figures, the costs that have not been calculated or have not been fully calculated in the adjustments to electricity prices for the period 2022-2023 are about 44,000 billion VND.
According to EVN, for the electricity price in 2022 - 2023, the Ministry of Industry and Trade has organized inspection teams according to the provisions of Decision No. 24/2014/QD-TTg and Decision No. 05/2024/QD-TTg. In addition, in 2024, the State Audit also conducted a thematic audit on "electricity price management in the period of 2022 - 2023".
EVN has not been fully compensated for input costs
According to EVN, in the period of 2022-2023, the costs that have not been calculated or have not been fully calculated in the adjustments to electricity prices will be about 44,000 billion VND. This has caused EVN to not have enough compensation for input costs and affected the preservation and development of state investment capital in enterprises.
In addition, in the coming time, EVN will implement large-scale, important and urgent projects such as the Ninh Thuan 1 nuclear power plant project, the Quang Trach 2&3 LNG gas power plant, the Bac Ai pumped-storage hydropower plant, expanded hydropower plant projects, offshore wind power... With the investment plan as mentioned above, the demand for investment capital to implement the project in the coming time is very large.
EVN believes that at Point 2, Article 52 of the Law on Electricity 2024, "Retail electricity prices are reflected and adjusted promptly according to actual fluctuations in input parameters, compensating for costs reasonably and validately with reasonable profits to preserve and develop business capital of enterprises in accordance with the socio-economic conditions of each period and the level of the competitive electricity market" and based on Law No. 68/2025/QH15 - Law on State Capital Management and Investment in Enterprises, enterprises are responsible for preserving and developing capital; to ensure investment resources for power source projects assigned by the Government and the Ministry in the coming time to ensure electricity supply for the country, the amendment and supplementation of Decree No. 72/2025/ND-CP allowing the costs not to be fully included in the electricity price according to the previous regulations and necessary adjustments in the electricity price plan.
