Illustrative image (Source: VNA)Theministry said that EVN is required to build a basic price for the year of 2017based on calculation of 2015 and estimates of 2016.
Concerningthose numbers, Electricity of Vietnam’s (EVN) 2015 power turnover reached morethan 234.3 trillion VND (10.32 billion USD) or equivalent to electricity retailprice of 1,630 VND per kWh.
Turnoverfrom activities relating to power production and trading in 2015 was 2.5trillion VND.
Accordingto Deloitte Vietnam’s independent audit report, the losses which have not beencalculated into EVN’s electricity production and trading in 2015 were up to 8.5trillion VND. The losses came from the foreign exchange rate differencesthroughout the group’s wholly invested companies. Its foreign exchange rate differenceat companies which EVN hold shares was over 1.3 trillion VND.
EVNin 2015 therefore posted a slight loss in power production and continued tosell electricity lower than the production cost.
NguyenAnh Tuan, Director of the ministry’s Electricity Regulatory Authority, saidthat in 2015 the prices of main fuels including coal, oil and gas affected theelectricity production. The Ministry of Science and Technology in the same yearpromulgated a decision to increase gas prices sold to electricity production by2 percent while keeping coal prices stable.
“Theimportant factor in 2015 was that hydropower plants did not reach the setproductivity due to unfavourable hydrological conditions. The power output fromhydropower plants was reduced and EVN had to mobilise electricity fromcoal-fired and gas-power plants. This affected to production costs,” Tuan added.
Headded that according to current regulations, construction costs of villas andtennis courts have not been calculated into power production cost. Theconstruction has come from the EVN’s welfare fund, of which, turnover fromEVN’s financial activities was around 1.01 trillion VND and those from itscorporations was 194.3 billion VND. Turnover from dividend and profit was 60.95billion VND.
Hesaid the losses from the foreign exchange difference would be graduallyaccounted into power tariffs.
EVNDeputy General Director Dinh Quang Tri said in 2015 that the group has itselfavoided roughly 3.5 trillion VND in foreign exchange difference losses thanksto maximising costs and increasing profit. The remaining losses will begradually accounted for.
“Normally,the foreign exchange difference losses must be accounted in a year according tothe accounting mechanism. However, the EVN asked the ministry and financeministry to gradually handle the losses over five years due to its specialcharacteristics. If the loss was accounted all at once, power tariffs wouldsurge. The losses would be taken into account of power tariff or reducingproduction costs,” Tri said.
“Theministry would review the basic prices. If there is a change of input pricessuch as fuel, foreign exchange and rates of power resources higher than 7 percent,the power tariff would be adjusted,” he added.-VNA
VNA
