Specifically, answering VTC News on the sidelines of the National Assembly, delegate Le Thanh Van (Ca Mau delegation) - Standing member of the National Assembly's Finance and Budget Committee said that EVN's losses could be partly due to poor management, leading to high costs. Therefore, it is necessary to review the costs of the power transmission system and the costs of electricity production of EVN when many experts are still concerned that these costs are too high due to the cumbersome operating apparatus.
“There was a period when public opinion suspected that EVN used accumulated money to invest in real estate and resorts, leading to losses, and then calculated it into electricity prices. I don’t know how far the investigation into this issue has gone, as it has not been made public yet,” Mr. Van wondered.
According to delegate Le Thanh Van, like him, many other National Assembly delegates believe that it is necessary to inspect and examine the role of EVN to answer the National Assembly about the management and administration of this enterprise, why it makes losses every year, and then calculates it all into the electricity price, and in the end, people have to bear it. If the losses are due to poor production and management, not saving on machinery and other arising costs, then it needs to be adjusted.
National Assembly delegates want to clarify EVN's losses that led to the increase in electricity prices. (Illustration photo: VnEconomy)
Similarly, delegate Pham Van Hoa, Deputy Head of the Dong Thap Province delegation, said: "I request clarification on the electricity industry's reported losses. What is the reason for EVN's reported losses? Is it due to high costs from transmission losses, cumbersome human resources, improper investment, resulting in budget losses, or is it because you sell electricity at low prices to people and collect little in return, resulting in losses?"
At the discussion session in the hall on the implementation of the socio-economic development plan and state budget for 2022 and the first months of 2023 on the morning of May 31, delegate Le Huu Tri (Khanh Hoa delegation) expressed his opinion: " It is necessary to clarify the loss of more than 26,000 billion VND of EVN in a transparent manner ".
Regarding the issue of electricity, delegate Pham Dinh Thanh (Kon Tum delegation) said that it is necessary to quickly mobilize the large output of completed wind and solar power to the grid. Currently, many renewable energy enterprises are facing difficulties and are in dire straits, while completed investment projects that cannot be put into commercial operation are a huge waste of the country's resources.
At the group discussion on the socio-economic situation on May 25, delegate Dinh Ngoc Minh (Ca Mau) also reflected on the situation that people are upset about why they have to import electricity while 4,600 MW of wind and solar power are not connected to the network or sold to the grid. "Why is that? This is also a national asset, why waste it like that?", Mr. Minh asked.
Mr. Minh raised the question, the reason why these power sources cannot be mobilized is due to procedural errors, errors in regulations, but the procedures are set by us, why not improve these procedures to connect 4,600 MW to the grid, but have to buy electricity from abroad?
At the regular Government press conference on the afternoon of June 3, answering press questions about the power shortage and solutions to ensure electricity for daily life and production in the coming time, Deputy Minister of Industry and Trade Do Thang Hai admitted that at present, some places are lacking electricity, both for production and daily life.
" Currently, some places are lacking electricity for production and serving people's lives. I would like to express my sympathy and share the difficulties of businesses, the suffering and inconvenience of people ," said Mr. Do Thang Hai.
Regarding the cause, Mr. Do Thang Hai said that from May until now, the record-breaking heat wave across the country has been complicated and prolonged, leading to increased demand for household electricity. Meanwhile, the water level in hydroelectric reservoirs in the North is low, affecting the electricity supply for the dry season of 2023. In addition, the imported coal source is slower than the demand for electricity production.
Faced with the above difficult situation, Deputy Minister Do Thang Hai informed that the Government and the Prime Minister have directed many solutions to ensure the highest level of electricity supply, especially in the short term. The Ministry of Industry and Trade is implementing the Prime Minister's direction with drastic and urgent solutions to ensure electricity supply during the hot season.
At the meeting of the Ministry of Industry and Trade on the situation of electricity supply and mobilization of renewable energy sources on May 26, Mr. Dang Hoang An - Deputy Minister of Industry and Trade - answered about EVN's loss. According to Mr. An, Vietnam has operated a competitive electricity market with 3 levels. In which, the competitive electricity generation market has been operating since July 1, 2012. Thus, according to the principle, EVN will buy electricity sources with low to high prices.
Accordingly, all sources from hydropower, coal, gas, oil, and renewable energy are sold to EVN. This group is the only unit that buys electricity to resell to customers. Therefore, if mobilizing high-priced electricity sources causes costs to increase, EVN will have to bear it all.
Thus, the market is operating on the principle that EVN is playing the role of "buying on behalf of" and has to bear the increased costs when the electricity purchase price increases. This means that the input price follows the market, while the output is controlled, not following the market, which is the reason why EVN is losing money.
Recently, the Ministry of Industry and Trade announced the results of an inspection of the electricity production and business costs of EVN Group. Accordingly, the results showed that in 2022, EVN lost more than VND 26,235 billion.
EVN's 2022 electricity production and business results were a loss of more than VND 36,294 billion. Revenue from activities related to electricity production and business in 2022 was VND 10,058 billion. EVN's total 2022 electricity production and business activities and activities related to electricity production and business (including income from financial activities and from sales of reactive power, interest on deposits, etc.) in 2022 lost VND 26,235 billion (excluding income from other production).
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