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Managing electricity prices according to a roadmap, suitable to people's ability to pay

Báo Kinh tế và Đô thịBáo Kinh tế và Đô thị25/05/2024


The Prime Minister highly appreciated the preparation of meeting documents of the Ministry of Industry and Trade , the State Capital Management Committee at Enterprises, and Vietnam Electricity Group on the situation of ensuring sufficient electricity production and supply for people's production and consumption during peak periods of May, June, July 2024 and the following years, and the active implementation of the Plan to implement the VIII Power Plan with a high sense of responsibility to propose specific, clear and highly feasible solutions.

In recent times, the Government and the Prime Minister have continuously directed the tasks and solutions resolutely, synchronously and comprehensively; the Ministry of Industry and Trade, the State Capital Management Committee at Enterprises, EVN and relevant agencies have performed well in directing and implementing the proposed tasks and solutions, thanks to which the electricity supply situation for production, business and people's lives has been basically ensured, especially we have overcome the record heat wave in the past 50 years at the end of April, the highest daily electricity consumption reached 993 million kWh (up 23.1% over the same period in 2023), the national electricity consumption capacity (Pmax) reached a new peak at 47,670 MW (up 13.2% over the same period in 2023), however, the national power system still operates safely, without power outages or power cuts due to power shortages.

In the first quarter of 2024 and the months of April and May, the economy continued to change positively, growing at 5.66%, the highest in the 2020-2023 period, leading to electricity consumption demand being forecast to continue to increase beyond the forecast compared to the set plan (the whole country increased by 13%, higher than the 9% forecast plan, the North alone increased by a record of up to 17% compared to the same period in 2023). In the spirit of high determination, absolutely not to let there be a shortage of electricity for production, business and people's lives in any case, the Prime Minister requested relevant ministries, branches, localities and enterprises to make more efforts, be more determined, absolutely not be subjective, negligent, closely forecast the situation, be ready to prepare for the worst possible scenarios to have a plan to ensure electricity supply for production, business and people's consumption in the coming time, especially in June 2024 when the new 500 kV line 3 circuit is expected to be completed at the end of June.

To ensure sufficient electricity supply for production, business and people's lives during peak periods in 2024 and the following years, and to organize the implementation of the results of the Plan to implement the VIII Power Plan, the Prime Minister requested relevant ministries, branches and units to deploy specific solutions.

Efficient coordination of power sources

Regarding power sources, the Ministry of Industry and Trade shall preside over and coordinate with relevant ministries, agencies and EVN to diversify power sources, including research and consideration of imports if necessary, while making the most of domestic power sources; effectively coordinate sources including coal-fired thermal power, hydropower, solar power, wind power, biomass power, etc. Power plants must calculate appropriate maintenance and repair times and absolutely not let coal-fired power plants and other power sources have incidents due to causes other than force majeure.

Regarding coal fuel sources, TKV and Dong Bac Corporation have promoted maximum coal exploitation to meet fuel needs and have reserves for coal-fired thermal power plants, minimizing coal imports. At the same time, coal-fired thermal power plants are requested to purchase maximum domestically produced coal to increase domestic production, create jobs and livelihoods for people and businesses; at the same time, step up prevention and suppression of illegal coal mining and smuggling, and contribute to preventing foreign currency loss at this time.

Regarding water resources, the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, the State Capital Management Committee at Enterprises, the Ministry of Natural Resources and Environment, based on their authority, direct EVN, the National Power System Dispatch Center (A0) and relevant units to closely monitor and forecast weather, hydrology, and early flood situations to proactively and flexibly manage and harmonize the two goals, both storing water reserves to ensure maximum power generation during peak times (from June to the end of July) and using water at the right time to generate power so as not to waste water resources, while also having room for floods. Absolutely do not operate jerkily, extremely, or in a principled manner that wastes water resources and does not meet electricity supply requirements.

Regarding gas and oil supply, PVN directed the best implementation of the production plan, ensuring adequate gas and oil supply according to plan, prioritizing natural gas allocation for power generation during peak months (June, July). Coordinate with mine owners to arrange appropriate source repair schedules, not performing repairs during peak times.

Review the power transmission and distribution system, promptly repair and troubleshoot to ensure safe operation.

About power transmission, power distribution,   The Prime Minister assigned the Ministry of Industry and Trade to preside over and closely coordinate with the State Capital Management Committee at Enterprises to direct EVN to urgently complete the 500 kV line 3 (519 km) from Quang Trach to Pho Noi to put into use before June 30, 2024; strive to complete transmission projects to serve electricity import from Laos in May 2024 such as Dak Ooc Switching Station, 200 kV Nam Sum - Nong Cong line, 500 kV Monsoon - Thach My line... to promptly ensure electricity supply to the North. Study mechanisms and policies to mobilize social resources, encourage investment in the power transmission system in the spirit of "harmonized benefits, shared risks" among the State, people and enterprises.

The Ministry of Industry and Trade shall preside over and closely coordinate with the State Capital Management Committee at Enterprises to direct power transmission and distribution units to review the system, promptly repair and overcome problems to ensure safe and reliable operation; distribute electricity appropriately and effectively between regions. Prepare spare materials and equipment to promptly and quickly fix any problems if any.

Electricity prices must be managed according to a suitable roadmap, not "jerky", electricity prices must be suitable for people's ability to pay.

The Prime Minister also requested more serious and active implementation of Directive No. 20/CT-TTg dated June 8, 2023 of the Prime Minister on enhancing electricity saving; EVN urgently coordinates with provinces and centrally-run cities in the North to do a good job of communicating about saving and using electricity efficiently.

Regarding electricity prices, the Ministry of Industry and Trade, the Ministry of Finance, the State Capital Management Committee at Enterprises, and EVN, based on their functions, tasks, and authority, will manage electricity prices according to a suitable roadmap, without "jerking"; the electricity industry will promote cost savings, enhance digital transformation applications, increase competitiveness, reduce costs, etc. Electricity prices must be suitable to the affordability of people and businesses, and Vietnam's conditions, with state regulation to stabilize the macro economy.

Before May 30, submit to the Government a draft Decree on the direct electricity purchase and sale mechanism.

Regarding policy development, the Prime Minister requested the Ministry of Industry and Trade to urgently complete procedures, documents, and draft Decree regulating the direct electricity purchase and sale mechanism between large electricity users (DPPA mechanism) and power generation units, and submit it to the Government before May 30, 2024.

Regarding the draft Decree regulating the mechanism and policies to encourage the development of self-produced and self-consumed rooftop solar power and the draft Decree on the mechanism for developing power projects using natural gas and LNG, the Prime Minister requested the Ministry of Industry and Trade to urgently complete the procedures, documents, and draft Decree to submit to the Government before June 15, 2024. The development of the Decrees is based on the principle of listening to the opinions of relevant parties so that the policies can come into life, meet practical requirements, prevent corruption and negativity right from the policy development stage, and avoid complicated problems.

Ministries, branches and agencies, according to their assigned functions and tasks, shall consider and study the proposals of the People's Committees of Ninh Binh and Ha Tinh provinces; Vietnam Electricity Group, Vietnam Oil and Gas Group, and Vietnam National Coal and Mineral Industries Group to resolve within their authority and regulations, and report to the Prime Minister on issues beyond their authority.

The Prime Minister assigned Deputy Prime Minister Tran Hong Ha to direct ministries and agencies to actively carry out assigned tasks. The Government Office is responsible for urging implementation and promptly reporting and proposing to competent authorities on arising issues.



Source: https://kinhtedothi.vn/dieu-hanh-gia-dien-theo-lo-trinh-phu-hop-kha-nang-chi-tra-cua-nguoi-dan.html

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