Electricity of Vietnam (EVN) may be in a worse financial position in 2023 than in 2022 as the parent group, power companies, and National Power Transmission Co. are projected to lose around $2.75 billion in production and business if retail energy rates remain unchanged.

According to EVN's estimates, the total production and commercial losses incurred by the group in 2022 and 2023 may exceed $3.92 billion. By the end of 2022, EVN, Power Generation Corporations, and National Power Transmission Corporation had lost more than $1.22 billion in manufacturing and operations.

Some experts fear that EVN might lose much more if the current scenario does not improve rapidly. Due to a lack of funds to cover electricity purchase costs from power generation companies, EVN faces numerous risks.

The price of coal increased dramatically in 2023, rising sixfold since early 2021 and tripping since early 2022. Hence, the cost of producing power from imported coal jumped to 15-17 US cents per kWh, even though the average price of electricity is only 7.8 US cents per kWh.

The Ministry of Industry and Trade (MoIT) has not yet authorised EVN's planned strategy for higher electricity prices. In 2022, EVN asked the government to consider granting early approval and adjusting the median sales price of power to ensure financial balance in 2023 and prevent the loss of state capital invested in EVN.

EVN also requested that the MoIT to submit a report to the prime minister and propose the implementation of a market mechanism for electricity activities, including the immediate adjustment of prices when input variables change.