Competitive electricity market after 20 years of discussion is still 'very vague, very far away'

National Assembly Delegate Tran Huu Hau said that to have a truly competitive electricity market, which will significantly contribute to solving the current problems of the electricity industry, radical changes are required.

Delegate Nguyen Duy Thanh ( Ca Mau ) - Photo: GIA HAN

The power shortage situation but EVN still regularly cuts and lays off electricity output of small-scale rooftop solar power projects has been mentioned.

Many solar power projects are cut

National Assembly delegate Nguyen Duy Thanh (Ca Mau) when discussing in the hall about the Electricity Law project (amended) on the afternoon of November 7 said that through studying the draft law, at point c, clause 2, article 5 of the draft law, it is stipulated that the State has a monopoly on operating the power grid and transmitting electricity, except for the power transmission grid invested in and built by the private sector.

According to the delegate, this regulation contradicts another clause (clause 5, article 5) which stipulates the elimination of all monopolies, attracting all economic sectors to participate in investing in the construction of power source projects and power grids according to the power development plan, electricity distribution activities, electricity wholesale, electricity retail, and non-state economic sectors are allowed to operate the power grids they invest in and build according to the provisions of law.

According to Mr. Thanh, the current national power grid is about 95% invested by the State and cannot be socialized according to Clause 5, Article 5 of the draft law. He proposed to revise Point c, Clause 2, Article 5 as "The State has a monopoly on operating the high-voltage and ultra-high-voltage transmission grid".

"Currently, there is a power shortage, but Vietnam Electricity Group (EVN) is still steadily cutting and laying off electricity output from small-scale rooftop solar power projects that have signed 20-year contracts with investors without any reduction clauses, while EVN's increase in electricity prices is not in line with the Party and State's policy on incentives according to Decision 13 of 2020 of the Prime Minister," said Mr. Thanh.

When will there be a competitive electricity market?

Delegate Tran Huu Hau (Tay Ninh) - Photo: GIA HAN

Delegate Tran Huu Hau (Tay Ninh) said that with the current situation of the electricity industry, many contents proposed in the bill have not created a clear corridor and strong legal basis for the development of the electricity industry.

Mr. Hau said: "A series of issues are causing frustration and controversy related to the electricity industry such as: electricity prices, electricity trading, electricity generation and grid connection of factories outside EVN; cross-subsidy... and the boundary between business and implementing social security tasks, implementing State support policies for subjects...".

The Tay Ninh delegation said that there are many reasons leading to the above problems, but fundamentally it is due to the lack of a competitive electricity market.

Mr. Hau said that 20 years ago, when participating in the review of the Electricity Law, a special issue of interest and discussion was the construction and completion of a competitive electricity market. However, after 20 years, a truly competitive electricity market still seems very vague and far away. The competitive electricity market has 3 levels: competitive electricity generation; competitive electricity purchase and sale and competitive retail, but up to now all 3 levels are only the surface of the competitive electricity market.

According to Mr. Hau, to have a truly competitive electricity market, which contributes significantly to solving the current problems of the electricity industry, it is necessary to radically change and truly separate the three key stages of the electricity industry: electricity generation, electricity transmission and national electricity system dispatch.

"The electricity sector is related to the country's energy security, the State must take the leading role, manage and operate comprehensively and closely. But the above three stages must be separate; at the same time, there must be a clear separation between business and state management, between business and implementation of social security policies," Mr. Hau expressed his opinion.

Comprehensive amendment of Electricity Law needs discussion in 2 sessions

Delegate Tran Huu Hau stated: "Unfortunately, after 20 years, the heart of the national power system, the National Power Dispatch Center, has just officially separated from EVN and transferred to the Ministry of Industry and Trade. It is still worrying about stabilizing its organization and personnel, and it is not known when it will truly be able to escape the "giant shadow" of EVN.

Meanwhile, the amendments in this draft do not have strong enough legal provisions for decisive changes to help the competitive electricity market operate in a truly competitive, open, transparent and.... fair manner; contributing decisively to the strong and sustainable development of Vietnam's electricity industry. The same goes for some other important contents"...

He suggested that if passed at this session, it should only focus on urgent issues whose impacts have been carefully assessed, as a basis for achieving the immediate goal of ensuring national energy security. If comprehensive amendments are required, they should be studied in depth and considered more carefully, so they should be passed through two sessions.

Source: https://tuoitre.vn/thi-truong-dien-canh-tranh-sau-20-nam-ban-thao-van-rat-mo-nhat-rat-xa-voi-20241107163927947.htm