Vietnam national utility EVN sees rise in production costs, power sales

State utility Vietnam Electricity (EVN) reported a 7.16% year-on-year hike in power production costs and an 8.18% increase in power sales last year, according to the Ministry of Industry and Trade.

The Thursday announcement followed an inspection of EVN’s audited financial statements by a joint-team comprising the trade ministry (MoIT), the labor ministry, the Commission for the Management of State Capital at Enterprises (CMSC), the Vietnam Consumer Protection Association, and the Vietnam Chamber of Commerce and Industry (VCCI).

EVN’s power production costs reached VND528,604 billion ($21.27 billion) last year, up VND35,339 billion, or 7.16%, year-on-year for an average cost of VND2,088.9 per kWh, up 2.79%.

The power production costs included VND441,356 billion ($16.55 billion) for power generation, or VND1,744.1 per kWh; VND18,879 billion for power transmission, or VND74.6 per kWh; VND66,773 billion for power distribution-retail, or VND263.9 per kWh.

EVN also had to spend VND428.5 billion ($17.24 million) to help reduce power prices in areas not yet connected to the national power grid.

The utility earned VND494,359 billion ($19.89 billion) from selling 253.05 billion kWh, up 8.18% and 4.26% year-on-year, respectively. The average sale price was VND1,953 per kWh, up 3.76%.

As a result of production costs outpacing sales prices, EVN incurred a loss of VND34,225 billion ($1.42 billion) last year from the power business.

Vietnam's latest power price hike happened in November 2023 with retail electricity prices going up 4.5%.