Business
EVN records operational losses
  • | dtinews.vn | December 05, 2018 01:36 PM
The Ministry of Industry and Trade will raise electricity prices after the Electricity of Vietnam Group reported losses of trillions of VND.


 

EVN records operational losses



On November 30, the Ministry of Industry and Trade announced EVN’s operational costs for 2017. According to the report, EVN produced 174.65 billion kWh which worth nearly VND290trn (USD12.3bn) while its operation cost was over VND291trn. This means even though the electricity prices already increased from 2016, EVN still lost VND1.3trn.

EVN also earned over VND4trn (USD170m) from selling reactive power from the energy grid, financial activities of the mother company and other sources. However, according to EVN, it still hasn't included VND5trn of operational costs. It cited rising coal prices as well as water source tax and changes in USD currency exchange rates as contributory causes to their losses.

It reported VND3trn (USD128m) lost over currency exchanges in several contracts last year.

Nguyen Anh Tuan, Director of the Electricity Regulatory Authority, said the Ministry of Industry and Trade had drafted a plan for an electricity price hike in 2019. The ministry will review the plan before submitting to the price management board this December. The next price rise must be set at least six months after the most recent price hike, which was already in December 2017.

Deputy Minister of Industry and Trade Do Thang Hai said during a press conference that four plans had been drafted for review. "We'll check with the General Statistics Office of Vietnam about predicted GDP and CPI to see how the plans affect the public," he said.

He confirmed that they had no plan for a price hike in 2018.

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