Vietnam Electricity reports losses of $635 mln
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Vietnam Electricity (EVN) posted losses of VND15.758 trillion ($635.4 million) between January and October, with higher fuel prices a major contributing factor.
EVN said fluctuations in the world prices of coal, oil, and gas since the beginning of this year had caused its production costs and purchase prices of electricity it bought from other power plants to soar.
According to its financial statements, EVN racked up after-tax losses of more than VND16.586 trillion ($668.79 million) in the first half of this year.
With world prices of fuels in 2023 predicted to remain high, it would be hard for EVN to achieve good business results next year, the utility said. It estimates losses of VND31.36 trillion in 2022.
According to a report by the Ministry of Industry and Trade, prices of input materials for electricity production have skyrocketed since the beginning of the year, with that of imported coal doubling to $304.8 per ton, so retail prices of electricity may increase shortly.
The average retail price of electricity currently stands at VND1,864.44 (7.5 cents) per kWh, excluding value-added tax. In June, EVN said the year’s price should increase to VND1,915.59 (7.7 cents) per kWh.
Questions & Answers
Q.What is the primary reason for Vietnam Electricity's significant losses this year?
What is the primary reason for Vietnam Electricity's significant losses this year?
Higher fuel prices are a major contributing factor. Fluctuations in world prices for coal, oil, and gas have caused EVN's production costs and the cost of electricity purchased from other plants to soar.
Q.What were Vietnam Electricity's total losses in the first half of this year?
What were Vietnam Electricity's total losses in the first half of this year?
According to its financial statements, Vietnam Electricity (EVN) racked up after-tax losses of more than VND16.586 trillion, which is approximately $668.79 million, in the first six months of the year.
Q.Are electricity retail prices expected to increase soon in Vietnam?
Are electricity retail prices expected to increase soon in Vietnam?
Yes, a report by the Ministry of Industry and Trade suggests retail prices of electricity may increase shortly. This is due to skyrocketing input material prices, such as imported coal doubling in cost.
Q.What is the current average retail price of electricity per kWh in Vietnam?
What is the current average retail price of electricity per kWh in Vietnam?
The average retail price of electricity currently stands at VND1,864.44 per kWh, which equates to about 7.5 cents. This figure excludes any value-added tax.
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