EVN’s 2010 losses excluded in 2011 electricity price scheme

After raising electricity prices earlier in March this year, leaders of the Ministry of Industry and Trade said that the main purpose of increasing prices was to reduce losses for Electricity of Vietnam Group (EVN).

However, on April 22, deputy general director of EVN, Dinh Quang Tri, told that, the electricity price increase scheme in 2011 completely did not include all the group’s losses in 2010.

According to preliminary reports, the actual losses of EVN in 2010 were only about 8 trillion dong. Tri said that EVN asked a series of its subsidiaries to cut all costs. “Entire power transmission companies and electricity distribution companies cut off the profits that were previously planned for them, so the cost has decreased by more than 3 trillion dong, bringing the total losses of the group to just over 8 trillion dong”, said Tri.

According to Tri, in the electricity increase price scheme in 2011, EVN has not calculated the losses into the electricity prices. Department of Electricity Regulation has asked EVN to wait until the audit result is issued to give correct figures.
Currently, the auditor is working and by the end of May and early June, VNE will have official audited figures.

Tri said that fuel for power generation now accounts for 60 percent of the costs for coal and gas, while the fixed costs are only about 20-30 percent. – NDHMoney

Tags: EVN, Vietnam electricity, Vietnam energy, Vietnam power shortage

Posted by VBN on Apr 27 2011. Filed under Energy. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry