The Ministry of Industry and Trade has recently proposed to continue to raise electricity prices in 2024 to reflect fluctuations in input costs and help the Vietnam Electricity Group (EVN) secure resources to fulfill payment obligations to power plant investors.
The proposal is made in the context of EVN's persistent financial challenges, with a deficit of approximately VND17 trillion in 2023 despite two prior price adjustments.
According to Mr. Dang Hoang An, Chairman of EVN, the main factors contributing to the rise in electricity production costs include high fuel prices compared to previous years. Furthermore, the unfavorable structure of electricity sourcing is a result of inadequate water levels in hydroelectric reservoirs. Additionally, the cost of purchasing electricity on the market is elevated, and payment expenses have increased in comparison to contracted electricity prices.
Mr. Nguyen Hoang Anh, Chairman of the Commission for Management of State Capital at Enterprises, shared that addressing the accumulated losses of EVN is not feasible without an increase in electricity prices.
