From now till the end of this year, if Electricity of Vietnam (EVN) is allowed to adjust the electricity price of no higher than 5 percent each time, the loss will be lessened by over three trillion dong, according to the local newswire VnExpress.
In particularly, EVN said that if the electricity price is not adjusted for the second time, the accumulated loss till the end of 2011 may be up to 40 trillion dong. government’s Decision 24 issued in February more or less gives the self-determination to EVN.
Under the regulations, at least 3 months, electricity price will be adjusted once of no higher than 5 percent, from now until the end of the year, EVN may be allowed to increase the electricity price for two times. And if EVN is allowed to do this, the losses will be lessened by three trillion dong.
In fact, from April till now, EVN repeatedly asked to adjust electricity prices for the second time due to financial difficulty. Even in most of the online briefings of industry and trade sector, EVN leaders also complained about hardships and continually mentioned the electricity price hike.
At the time of announcement of new electricity price on March 1, Ministry of Finance (MoF) said that this increase of 15.28 percent is not enough to offset the cost. This means that EVN is suffering tens of trillion dong losses, because if calculating all costs, power prices must be raised by 62 percent.
MoF said that without the electricity price hike on March 1, the power sector will suffer a loss of 29.5 trillion dong, bringing the accumulated losses of years to 57.417 trillion dong.
EVN is now also a debtor of a number of major partners such as the Vietnam National Oil and Gas Group (PetroVietnam-PVN), Vietnam National Coal and Minerals Industries Group (Vinacomin) and Hiep Phuoc Power with a total amount to trillions of dong.