EVN intends to raise electricity prices from September

May 26, 2023 | 20:15

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EVN considers that the 3 per cent rise in electricity prices enacted at the start of May 2023 has not been sufficient to cover its costs. The energy provider is seeking permission to adjust the price from September 1 to counterbalance the additional expense incurred from high input costs to ensure the company's financial stability.

EVN proposes to amend Prime Minister Decision No. 24/2017/QD-TTg in order to modify the retail price of electricity for the period 2023-2025.

EVN reports that by altering the price by 3 per cent, the average retail price of electricity rose from its previous level of 7.9 US cents per kWh (excluding VAT) to 8.2 US cents per kWh (excluding VAT). However, this increase has been insufficient to offset the cost of purchasing electricity this year, and the company is projected to incur a loss for 2023. The company saw a loss of $1.13 billion in 2022 and this year's losses are set to reach $1.74 billion.

Although electricity sales are anticipated to increase by approximately $341 million for the remaining months of the year, EVN suggests the group and its constituent entities will have a hard time balancing their finances as a result of abrupt fluctuations in fuel prices and the foreign exchange rate.

Electricity prices to be revised up following holiday

The Ministry of Industry and Trade has allowed the Vietnam Electricity (EVN) to revise up electricity prices by a maximum of 3 per cent following the April 30 - May 1 holiday.