Mr. Nguyen Xuan Nam - Vice President of EVN
With the responsibility of being a State economic group, EVN is assigned many tasks and multiple goals by the Party, Government, and State; In which, EVN's highest mission is to supply power to the country, serving socio-economic development and people's daily life, including implementing social responsibility when maintaining stable retail electricity prices according to the Government's direction, Mr. Nguyen Xuan Nam shared.
Mr. Nguyen Xuan Nam said that, for example, to bring electricity to remote areas, borders, and islands, the power production cost of EVN is up to about 7,000 VND/kWh, but the electricity price that EVN sells to this area currently still maintains about 1,900 VND/kWh in accordance with the Party and State's policies.
As a State-owned enterprise, carrying out the noble mission assigned by the Party and State, EVN's operations are not only simply profit/loss activities but also the implementation of social security tasks, and is a macroeconomic stabilization tool. Therefore, EVN's selling price is much lower than the electricity production cost in remote areas, borders, islands, etc., which is also carrying out a political task with the target policy of “no one left behind”.
Also according to Mr. Nguyen Xuan Nam, in 2022, due to the instability influence in the world, the prices of coal, gas, oil, etc. spiked. For example, there was a time when the coal price increased 5 times, up to 400 USD/ton, the oil price also doubled while the electricity purchase price accounted for 84% of the electricity price structure. Therefore, rising coal and gas prices greatly affect the cost of electricity production, making it difficult for EVN to balance its finances. Entering 2023, although coal, gas, and oil prices have cooled down, but still at a high level.
After 4 years, although the retail electricity price has also been adjusted to increase by 3%, it has only partially resolved financial difficulties and EVN continues to face many difficulties in financial balance, EVN Vice President shared.
Also according to Mr. Nguyen Xuan Nam, implementing Resolution 55 of the Politburo, in the coming time, the operation of electricity prices shall be legalized and approach market prices.