In its recently audited financial report, the Vietnam Electricity (EVN) announced a loss of VND20 trillion, attributing it to the acquisition of electricity at costs exceeding its selling prices.

The report disclosed that EVN had suffered a loss of VND20.7 trillion in 2022. While the company earned over VND372.9 trillion from electricity sales in 2022, its cost of production was considerably higher, reaching VND402.6 trillion. This figure was a significant increase from the cost of VND331.6 trillion in 2021.

Earlier, an audit by the Ministry of Industry and Trade discovered that the total expenditure for power production and business operations amounted to VND419 trillion in 2021 and swelled to VND493.2 trillion in 2022.

The production cost in 2021 was VND1,859.9 per kWh, marking a 1.84 per cent increase from 2020. This cost saw a further surge in 2022, amounting to VND2,032.26 per kWh, which was 9.27 per cent higher than in 2021.

Contrastingly, the average retail price in 2022 was just VND1,854.44 per kWh. This meant that the production cost was VND177.82 per kWh more than the average price at which electricity was sold.

Beginning May 4, the average electricity price witnessed a 3 per cent increase to VND1,920.3732 per kWh. — VNS