EVN reports $1.5B loss in 2022

By Anh Minh   March 31, 2023 | 10:22 pm PT
EVN reports $1.5B loss in 2022
Electricians work in District 7, Ho Chi Minh City. Photo by VnExpress/Thanh Nguyen
Vietnam Electricity made a loss of over VND36.29 trillion ($1.55 billion) in 2022 due to rising costs, the Ministry of Industry and Trade has said.

The state-owned power manager and distributor’s financial performance is an important yardstick for the government in deciding whether to hike electricity tariffs this year.

It cost EVN VND2,032.26 to produce one kilowatt-hour of electricity last year, up 9.27% from 2021, according to a report the ministry made after examining its books.

But consumer prices have remained unchanged at VND1,864.44 per kilowatt-hour since March 2019.

Most components of power production saw price increase last year.

Costs of power generation went up nearly 21.5%.

The prices of domestic coal increased by 34-46% and imported coal by 163%.

Electricity transmission cost 5.56% more last year.

Deputy CEO of EVN, Nguyen Xuan Nam, said the huge loss puts the company in a difficult financial situation, and so it has sought a hike in tariffs this year.

Deputy Minister of Industry and Trade Do Thang Hai said there would "definitely be an adjustment in electricity prices soon."

Any hike will however impact inflation.

According to estimates by the Ministry of Finance, if power tariffs increase by 5% this year the consumer price index will see a 3.9% increase.

Hikes of 7% and 8% will push the CPI up by 4.4% and 4.8%.

The government targets containing inflation at 4.5% this year.

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