EVN lost more than 20 trillion VND, auditors clearly pointed out the reason

VietNamNetVietNamNet11/07/2023


EVN has just announced its 2022 Consolidated Financial Statements, audited by Deloitte.

According to the report, the total loss of parent company EVN in 2022 is more than 26.5 trillion VND. In consolidated business results, EVN lost 20.7 trillion VND. Meanwhile, in 2021, this unit made a profit of more than 14.7 trillion VND.

In 2022, if EVN's consolidated revenue is more than 463 trillion VND, revenue from electricity sales will account for more than 98%, with over 456 trillion VND.

Audited figures also show the reason for the group's losses. That is, the selling price of electricity is lower than the purchase price, reflected in the revenue from selling electricity and the cost of electricity.

The purchase price of electricity is higher than the selling price, causing EVN to suffer heavy losses in 2022.

Specifically, the revenue from electricity sales in 2022 of parent company EVN is 372.9 trillion VND. However, the cost of electricity is up to more than 402.6 trillion VND. This means that EVN sells at a price 29.7 trillion VND lower than the cost price. Meanwhile, in 2021, EVN's cost of electricity is only 331.6 trillion VND.

That shows that in 2022, EVN had to buy electricity at a higher price than the selling price. The main reason is the high price of coal.

In a report sent to National Assembly delegates in May 2023, EVN also clearly explained the reason why the group suffered losses last year.

In 2022, the cost of electricity generation accounted for 83.6%; transmission, distribution - retail and ancillary costs accounted for only 16.4%. Due to the sudden increase in input parameters of electricity generation in 2022, the cost of electricity generation increased sharply, from 1,506.4 VND/kWh in 2021 to 1,698.45 VND/kWh in 2022.

Power plants that are dependent on EVN account for only 20% of the total electricity output of the system, with an average electricity price of VND859.9/kWh.

As the sole buyer, to ensure sufficient electricity for socio-economic development, EVN said it had to buy 80% of the remaining electricity output from independent power plants under power purchase contracts. Electricity prices are approved by competent state agencies, with an average of VND1,757.5/kWh (excluding transmission, distribution - retail, and ancillary costs) to supply to customers.

In addition to the duties of an electricity production and trading enterprise, the group must also carry out the political tasks assigned by the Government in investing in the transmission grid and electricity sales network to mountainous and island areas and selling electricity at lower than cost, contributing to poverty reduction, maintaining political stability, and ensuring national security and defense in key areas.

The North still faces the risk of power shortage in the next 2 years, EVN proposes a series of solutions . The power supply situation in the coming period still faces many difficulties, especially in 2024 - 2025 in the Northern region.


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