EVN faces 'unprecedented challenges': minister

By Anh Minh February 15, 2023 | 04:00 am PT

Workers fix electric cables in Bac Lieu Province. Photo by VnExpress/Nguyet Nhi

Vietnam Electricity (EVN) is facing unprecedented challenges due to surging input costs, Minister of Industry and Trade Nguyen Hong Dien said at a meeting Wednesday.

The national utility estimates that its combined loss for 2022 and 2023 could exceed VND93 trillion ($3.94 billion). There is a concern that the company could fall into major financial troubles unless retail electricity prices are hiked.

The company posted a loss of VND28.8 trillion last year and is set to post another loss of VND64.94 trillion this year.

EVN forecasts that it could run out of cash by May and that it will not be able to pay its expenses starting June.

The company had earlier proposed that retail electricity prices be increased to ensure its financial stability.

Retail electricity prices have stayed unchanged since March 2019 at VND1,864.44 per kilowatt-hour.

Dien said that the company needs to quickly complete its audited expenses report for 2022, which is a key document that the government will look at to determine whether a price hike should be approved.

An adjustment in the electricity retail price needs to be considered thoroughly as it will have an impact on inflation, people’s lives and the government’s macro management, he added.