EVN proposes not to increase coal prices sold for electricity production

In a document dated June 13 sent to Dong Bac Corporation, EVN said it had received a document dated May 30 from this corporation regarding the increase in the price of domestically produced coal sold to electricity producers.

According to EVN, in 2022 and the first months of 2023, the production, business and financial situation of EVN and its member units will face many difficulties due to sudden fluctuations in fuel prices, the depletion of hydroelectric reservoirs in the North, extremely hot weather, sudden increase in load demand, and loss-making electricity production activities.

Therefore, EVN requests that Dong Bac Corporation consider not adjusting the price of domestic coal sold for electricity production, the price of domestic coal in the plan of blending with imported coal (as stated in Document No. 3661/DB-KD dated May 30, 2023); fully and continuously supply coal to thermal power plants to ensure production and electricity supply for 2023.

EVN also asked Dong Bac Corporation to consider reducing the price of mixed coal in the coming time.

In particular, EVN also requested Dong Bac Corporation to consider solutions to increase exploitation and supply of domestically produced coal to power generation units.

"Consider reducing domestic coal prices and blended coal prices to support EVN in the current difficult period according to the direction of the Government Standing Committee and the Ministry of Industry and Trade," EVN proposed.

EVN also requested Dong Bac Corporation to consider reducing the price of blended coal in the coming time to match the recent decrease in imported coal prices and to make monthly declarations.

According to the updated plan, the mobilized output of coal-fired thermal power plants in June and July 2023, especially in the Northern region, will remain at a very high level. Specifically, the total expected mobilized output of EVN's anthracite coal-fired thermal power plants in June and July is 12.33 billion kWh, corresponding to the coal demand of 6.03 million tons of coal.

However, the total volume under the contract signed with TKV and Dong Bac Corporation is 4.388 million tons, about 1.642 million tons short of the plan. Of which, Vinh Tan 2 Thermal Power Plant (Power Generation Corporation 3) is expected to proactively supplement about 600 thousand tons in June and July 2023.

Thus, the remaining coal volume is about 1 million tons short for the remaining factories of EVN (about 600 thousand tons in June and 400 thousand tons in July).

Electricity surplus and shortage is a very painful thing, we need to find the ultimate responsibility . Why is EVN a monopoly but still losing money? EVN has the right to adjust the price by 3% but does not dare to do it, that is EVN's responsibility. Why EVN does not do it or is not allowed to do it must be clearly explained.

Source