According to Decision No.24 by the Prime Minister, it is over half a month to go until Vietnam runs a competitive electricity market (July 1st). However, the question on possible electricity price rise at that time emerges, since Vietnam Electricity repeatedly complains about their lack of capital and proposes increased electricity prices. In addition, electricity supply status will be limited in peak season.
Proposal of increasing electricity price
Giving the reason of capital trouble, Mr Duong Quang Thanh, Deputy Director EVN has proposed that the Ministry of Industry and Trade soon increase electricity in the briefings meeting on June 6th. Mr Thanh said, so far, EVN has only implemented 24 percent of its investment plan and cannot afford 15 percent accounting for reciprocal to continue some projects as planned.
EVN representatives reviewed some projects which are delayed due to lack of capital such as the Lai Chau Hydro-electricity project; Duyen Hai 2 Electricity project, and some foreign funded projects owing to highly increasing interest rate in the host country. Despite the electricity price already increasing once since March 1st, the extra rate of 15.28 percent has still been low and not enough to compensate the loss of electricity producers. “Without increasing the electricity price, EVN will remain in difficulty, whereas the 2010 losses of this enterprise are currently suspended,” added Mr Thanh.
According to Decision No.24 by the Government, electricity industry has the right to adjust price based on input parameters assigned by the government (exchange rate, material cost, electricity generation structure). If the average cost of three input materials this month suffers great fluctuation of over 5 percent, electricity price next month will be increased.
As for EVN, with a 5 percent increase, a report should be submitted to Ministry of Industry and Trade. The adjustment of over 5 percent requires EVN to build a plan, which then will be appraised by Ministry of Finance and revised by Ministry of Industry and Trade to report to the Prime Minister. After 15 days review, inter-ministries can take the decision to let EVN raise the electricity price.
Electricity supply status
According to Electricity Regulatory Authority of Vietnam, electricity production status in May increases by 8.8 percent against the same period, which is lower than the increase in first four months (9.5 percent). Observing the direction of Prime Minister, not balancing and reducing electricity in the whole country, electricity industry still ensures to supply adequately and safely for households nationwide. For the first five months, there’s a total 36.5 billion kWh supplied all over the country, increasing by 11.2 percent period on period.
Deputy Director of EVN Duong Quang Thanh said, in June, EVN also plans not to reduce electricity supply; the need for electricity increases by over 20 million kWh per day but cannot exhaust the adequate supply, thanks to some new factories put into operation and great flow of water into reservoirs.
At the moment, the Da River appears small floods; the flow of water into reservoirs in the North and the Middle is higher than the average level. However, the flow into lakes in the South is low, only equal to 50 percent of the average.
Recently, the power plants of Pleikrong, Ialy, Buon Tua Srah, Ba Ha River, Tri Anh, Thac Mo – Can Don – Srokphumieng, Ham Thuan – Da Mi operate at low productivity to ensure water supply for lowlands, pulling out the salt water, avoiding overload on electricity cables, as well as maintaining water level in the lakes till the end of dry season 2011. Therefore, in the long run, coal thermoelectricity, air turbine, and FO oil thermoelectricity must be mobilized for exploitation.
Huong Ly
Vietnamese
