Power play over EVN losses

Power play over EVN losses

The draft has been sent to the Ministry of Justice for review and is expected to be submitted for approval this month.

Hà Nội electricity workers checked power supply in Chương Dương Ward, Hà Nội. — VNA/VNS Photo Huy Hùng

The Ministry of Industry and Trade (MoIT) is weighing up how best to help Việt Nam Electricity (EVN) plug a multibillion-đồng hole in its accounts, with a proposal to recover accumulated losses by folding past costs into retail electricity prices.

The plan forms part of the third draft amendment to Decree 72/2025 on the mechanism and timing of retail price adjustments. The draft, now under review by the Ministry of Justice, is expected to be submitted for approval this month.

MoIT has outlined two options. The first would allow EVN to spread unallocated production and supply costs into electricity prices, based on audited financial reports from 2022 onward, and continue in future years. The second would only apply to costs incurred between 2022 and the date the decree takes effect, without rolling forward.

The draft also considers factoring in foreign exchange differences from revaluations and unsettled exchange rate gaps of power plants, provided these are clearly reflected in audited reports.

According to MoIT, the measures would help EVN cover costs and secure state investment capital. Data shows the group reported cumulative losses of around VNĐ50 trillion in 2022–2023, narrowing to VNĐ44.8 trillion by the end of 2024.

Regulators stressed that the new rules would not trigger major price shocks. Electricity tariffs could edge up by 2–5 per cent by year-end. Under a scenario of a 3 per cent increase from October, the consumer price index (CPI) would rise only 0.03 percentage points for the year.

MoIT emphasised that electricity price management will follow a clear roadmap, avoiding sudden hikes while ensuring economic stability and balancing the interests of businesses and households. 

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