EVN can profit 1,500 billion VND thanks to electricity price increase

Electricity Corporation (EVN) expects to increase revenue by 13,000 billion VND and achieve profit of 1,500 billion VND in 2015, after electricity prices were adjusted from March 16.

At the press conference on the electricity price increase on the afternoon of March 6, EVN Deputy General Director Dinh Quang Tri said that after the electricity price was adjusted from March 16, the group's revenue would increase by 13,000 billion VND. Previously in 2014, EVN achieved revenue of about 196,000 billion VND.

Thanks to the price adjustment, EVN is expected to make a profit of about VND1,500 billion, equivalent to about 1% of equity. “This figure is too low. The normal profit level should be about 3%. To achieve this level, electricity prices may have to increase by 12.8%,” said Mr. Tri.

Mr. Dinh Quang Tri said that not making a loss was EVN's "dream". Photo: Chi Hieu

However, EVN leaders affirmed that because the group is not a for-profit enterprise, but mainly serves social goals, not losing money has become EVN's "dream". "But if there is a loss, we cannot borrow capital and have to stop investing," Mr. Tri added.

From the above profit, EVN plans to spend about 930 billion to offset the exchange rate difference of more than 8,000 billion by the end of 2013. The remaining 7,000 billion, the group said, must ask the Government for an extension.

EVN also calculated that with the stable exchange rate as announced by the Bank, the world coal price tending to go down and the gas price increasing insignificantly, in 2015, there will not be a second increase in electricity price.

However, the group's deputy general director expressed that the current price is still not attractive to investors. "The current figure is still low for foreign investors. Domestic enterprises can accept it, but they cannot mobilize much capital, so they can only build small and medium-sized factories," said Mr. Tri.

According to Vnexpress