National Assembly discusses losses incurred by EVN

November 23, 2011

Last week Vietnam Electricity (EVN) released a report that it had suffered a loss of nearly VND10.16 trillion (US$484 million), for the first time. 

This matter was discussed in all seriousness at the National Assembly session on Nov 21 and solutions sort.

Raising electricity prices is the only way to help Vietnam Electricity Group (EVN) to cover its losses incurred during 2010, said an EVN official.

“We are buying electricity at a high cost but selling at a much lower   price, hence we incur losses,” said Pham Le Thanh, general director of EVN.

Concerning the fact that the public had raised the question of high income of power sector employees, the EVN chief said the average monthly wage of an EVN employee in 2009 was VND7.3 million, which fell by 5 percent in 2010.

Nguyen Huu Quang, standing member of NA Committee for Finance and Budget, replying to SGGP, confirmed that these figures and remarks were the result of an audit conducted by a team of officials from the Ministry of Industry and Trade and the Ministry of Finance.

People are worried at the possibility of raised electricity prices in wake of the present inflation, he added.

Vietnam Electricity (EVN) will withdraw all of its investments from non-electricity businesses in the next one to two years, and the loss of these ventures should not be counted in the losses of EVN, said Nguyen Huu Quang.

“The losses from other sectors, including telecom and financial investments, are excluded,” he added.

However, Quang said that electricity prices must comply with market economy and if the cost of production is too high, the government can not continue to insist on charging lower rates. The solution lies in people saving on consumption of electricity.

“Details about the time and price for the new electricity rates cannot be unveiled now,” he told SGGP.



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