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.