Power company demands 300% price hike

The Hiep Phuoc Power Co., Ltd in Ho Chi Minh City is demanding a three-fold increase of the current power price by April 1 or else it will stop the supply of power.  Electricians check a power grid in Ho Chi Minh City (Photo: SGGP) Located in Nha Be District, the power company has officially informed enterprises in the Hiep Phuoc Industrial Zone that it will increase the power price to US17 cent per kWh from the current price of US5 cent per kWh from April 1. If any enterprise does not agree to the rate, the company will simply stop the supply of power from that day onwards. Hiep Phuoc said it had faced a shortage of oil for producing electricity. To ensure sufficient power to enterprises in the industrial zone, the company reduced the volume of power sold to the Electricity of Vietnam (EVN) by half from March 19.  The company said it can only maintain power production until April 26 and its operation will depend on the enterprises' acceptance of the increased rate and EVN's timely … [Read more...]

Few companies approve high-price power from Hiep Phuoc

Pham Hong Tien, manager of Operation Office of Hiep Phuoc Power Co., told the Daily on Tuesday that only 32 enterprises in the processing zone and the industrial park have agreed to pay between 15-17 U.S. cents a kilowatt-hour since early April. Hiep Phuoc Power Co. has threatened to idle the power plant as it cannot sell power at just five U.S. cents a kWh due to higher input costs, saying it has incurred cumulative losses of up to US$120 million over the past few years. The company has been using diesel oil to operate the power plant since the suspension of gas supply by PetroVietnam Gas Corporation (PV Gas) in May last year. Tien said the company would likely stop the operation of the power plant unless half of the total number of 250 enterprises in these production zones agreed to the higher price inclusive of the fuel surcharge. Currently, Hiep Phuoc Co. in Nha Be District supplies power to the three main groups of clients including some 250 enterprises in Tan Thuan EPZ in … [Read more...]

HCMC firm proposes 200% hike in power price

VietNamNet Bridge - Ho Chi Minh City's Hiep Phuoc Power Co., Ltd has proposed doubling the current power price to offset losses as a 15% hike starting next month is too low. Yesterday the City People's Committee and relevant agencies had a meeting with the firm about the shocking proposal. The 100% foreign-owned company, located in the city's Nha Be District, reiterated at the meeting that "Hiep Phuoc Power Plant, owned by the company, will likely close on April 1 if its power price is not raised at such a rate." Loss of US$120 million Hiep Phuoc said the plant's production cost has recently increased by $15 cent per kWh, which resulted from a rise in world oil prices and a cut in gas supply to the company for the past several months by the Vietnam Oil and Gas Corporation. The Corporation explained to Hiep Phuoc that the aggregate supply of gas was just 20 million cubic meters per day, while the aggregate demand soared to a 23.1 million cubic meters per day. Hiep Phuoc … [Read more...]

No power price hikes in April: ministry

Vietnam's national power utility has momentarily eased concerns saying it has no plans to hike prices this month because of a sudden surge in prices of oil products. Dang Huy Cuong, chief of the Electricity Regulating Department at the Ministry of Industry and Trade, said the ministry has not received any proposal from Electricity of Vietnam (EVN) to increase power prices. "No adjustment in electricity prices will be made in April," he said. The last hike was last December when average tariffs increased by 5 percent to VND1,304 per kilowatt hour. Diesel prices rose to VND21,912 on March 28 from VND21,552 per liter while those of fuel oil increased by 4.6 percent to VND18,457 per liter.  Cuong said EVN has generated some electricity using diesel and fuel oil over the past few days because of the dry season, but has tried to limit the use of the "costly resource." Apart from hydropower, it will make use of coal and natural gas as much as possible, he added. EVN had earlier told … [Read more...]

20 trillion VND needed for EVN projects

The Hanoitimes - Electricity of Vietnam (EVN) is short of 20 trillion VND ($960 million) in funds targeted for work o­n electricity projects during the remainder of the year. According to EVN's report, the group has mobilised o­nly VND54 trillion ($2.6 billion), which accounts for 73 % of its capital needs for 2012. EVN's 2012 development plan is part of a five-year plan that sets out targets o­n electricity production. Despite rising demand for power across the country, total productivity this year is 110MW lower than targeted. According to Prime Ministerial decision 854/Qd-TTg, EVN's productivity should reach an annual average growth of 13 % for the 2011-15 period. For five years, EVN will operate 42 turbines at 20 power plants with total capacity of 11,600MW and improve more than 300 power transmission lines. Total targeted investment for the five years is more than 500 trillion VND ($24 billion). For this 2012, the amount is around 74 trillion VND. The shortfall in funds … [Read more...]

VND20 trillion needed for EVN projects

HA NOI (VNS)- Electricity of Viet Nam (EVN) is short of VND20 trillion (US$960 million) in funds targeted for work on electricity projects during the remainder of the year. According to EVN's report, the group has mobilised only VND54 trillion ($2.6 billion), which accounts for 73 per cent of its capital needs for 2012. EVN's 2012 development plan is part of a five-year plan that sets out targets on electricity production. Despite rising demand for power across the country, total productivity this year is 110MW lower than targeted. According to Prime Ministerial decision 854/Qd-TTg, EVN's productivity should reach an annual average growth of 13 per cent for the 2011-15 period. For five years, EVN will operate 42 turbines at 20 power plants with total capacity of 11,600MW and improve more than 300 power transmission lines. Total targeted investment for the five years is more than VND500 trillion ($24 billion). For this 2012, the amount is around VND74 … [Read more...]

Electricity rates remain unchanged

HA NOI (VNS)- Electricity prices did not rise in October and will not rise in November as planned, Dang Huy Cuong, head of the Electricity Regulating Department said yesterday. Cuong said this was decided after the department found out that production expenses during the past three months were lower than calculated. Power production in October was about 9.9 billion kWh, an increase of 11.8 per cent compared with last year. In the first 10 months of the year to date, productivity was about 95.6 billion kWh, an increase of 13.8 per cent compared with the same period last year. Demand for power next year is forecast to be 13 per cent higher than this year. To meet the demand, Electricity Vietnam plans to open six more turbines. The Prime Minister Nguyen Tan Dung will decide whether to go ahead with hydro power projects 6 and 6A, which were criticised for changing the natural water flow in the southern Dong Nai River. Nguyen Khac Tho, Deputy Head of the ministry of Trade's … [Read more...]

Power prices stay the same

HA NOI (VNS)- Electricity prices did not rise in October and will not rise in November as planned, Dang Huy Cuong, head of the Electricity Regulating Department said yesterday. Cuong said this was decided after the department found out that production expenses during the past three months were lower than calculated. Power production in October was about 9.9 billion kWh, an increase of 11.8 per cent compared with last year. In the 10 months of the year to date, productivity was about 95.6 billion kWh, an increase of 13.8 per cent compared with the same period last year. Demand for power next year is forecast to be 13 per cent higher than this year. To meet the demand, Electricity Vietnam plans to open six more turbines. The Prime Minister Nguyen Tan Dung will decide whether to go ahead with hydro power projects 6 and 6A, which were criticised for changing the natural water flow in the southern Dong Nai River. Nguyen Khac Tho, Deputy Head of the ministry of Trade's Power … [Read more...]

No immediate rise in power prices

HA NOI - (VNS) The Ministry of Industry and Trade would not increase electric prices this month as scheduled, the ministry announced at its monthly meeting in Ha Noi on Monday. The last increase was in July. The Ministry of Industry and Trade confirmed yesterday that it would not increase electric prices this month as scheduled.—File photo Dang Huy Cuong, director of the ministry's Electricity Regulation Department, said that according to Decision 24/TTg, the ministry must first investigate prices of production by Electricity of Viet Nam (EVN). But, as the investigation is still underway, Cuong said there would be no immediate change. EVN was now calculating production costs affected by a 40 per cent increase in coal prices since September 15. Since the domestic electricity market started operating according to market rules last year, prices have surged twice. The latest increase was by 5 per cent in July to an average rate of VND1,369 per kWh, excluding value-added … [Read more...]

Firms to absorb price hikes

HA NOI ' Increasing prices of essential goods will not preclude the Government from helping businesses in need of assistance, an official of the Ministry of Industry and Trade said at an online meeting held by the ministry on Monday. Workers of the Bim Son Electricity Co in the northern province of Thanh Hoa repair lines. ' VNA/VNS Photo Ngoc Ha The increase in prices of goods such as petrol, oil, gas and electricity is unrelated to the Government's support for troubled enterprises, said Vo Van Quyen, head of the ministry's Domestic Market Department. Increases or decreases in the prices of those products stemmed from changes in the world market. They were not related to the current production and business difficulties, said Quyen. If enterprises experienced business hardships, the Government would have a support system in place. "For instance, if a business has a high inventory, this is due to the market system rather than to price, he said. If enterprises do not choose … [Read more...]

48 domestic power plants sign up to VN’s competitive energy market

HA NOI — Viet Nam's competitive energy market (CEM) was launched in Ha Noi yesterday, with 48 of the country's 73 power plants with a capacity of more than 30MW already signed up to take part. Speaking at the launch ceremony, Deputy Minister of Industry and Trade Hoang Quoc Vuong said CEM was expected to create an equal playing field by removing the monopoly that EVN held over the market, leading to lower costs and ensuring a better balance between demand and supply. Vuong said that four years of preparation had gone into the establishment of the market, which was expected to improve efficient use of power in the context of a market economy. "Customers will have the opportunity to choose their own power suppliers and benefit from reasonable prices and reliability," Vuong said. Dang Huy Cuong, head of the ministry's Electricity Regulatory Authority of Viet Nam, said the market was part of the sector's long-term development strategy. The market would be developed into a competitive … [Read more...]

Steady supply of electricity secured

VietNamNet Bridge - Viet Nam would be able to secure a steady supply of electricity over the next six months as long as there were no major irregularities, according to the Ministry of Trade and Industry's Electricity Regulation Department. The levels at hydroelectric reservoirs were expected to increase as the country entered the rainy season, leading to greater power generation capacity. New thermoelectric plants, which had recently come into effect, successfully troubleshot, increasing operational reliability. New power sources, with total capacities of more than 2,000MW, were expected to be connected to the national grid although tentative amounts of imported electricity would remain high. During the first half of the year, the total capacity of both generated and imported electricity came to around 52.4 billion kWh, an increase of 10 per cent compared to the same period last year. VietNamNet/Viet Nam News … [Read more...]

Businesses shocked by power bills after tariff changes

Following a hike in peak-hour power tariffs two months ago, many businesses complain they are forced to pay unreasonably high bills. Technicians repair a transformer in HCMC. Many businesses complain of huge power bills since the industry ministry changed the tariff regime two months ago, hiking rates during peak hours. (Photo: SGGP) The increase in rates effected by Circular 05/2009/TT-BCT of the Ministry of Industry and Trade is against Decision 21/2009/QD-TTG from the Prime Minister, they said, as did experts. The Decision caps the increase in average tariffs at 8.92 percent but the actual increase is as high as 33.4 percent, according to some estimates.       But the ministry denies this charge, saying it has increased the power price for industry by just 6.25-7 percent. The Electricity Regulation Department in Ha Noi, Tien Giang, and Long An have found that the actual increase for many businesses has been over 22 percent. For instance, the Garment Joint Stock Company No. 10 … [Read more...]

Debate on joint-stock trading company project

A consultation on the project to set up an electricity trading company proposed by the Vietnam Electricity Group (EVN) took place on the morning of July 10. This meeting was held by the Electricity Regulating Department, the Ministry of Industry, under the directive of the Prime Minister.At the meeting were present representatives from the Governmental Office, the Finance Ministry, the Ministry of Internal Affairs, the Ministry of Investment and Planning and other departments under the Industry Ministry. EVN introduced three draft projects on the electricity trading company to the delegates: a joint-stock company with the participation of EVN, a joint-stock company without the participation of EVN as a shareholder, and a state-run non-profit company. There were differences among delegates on the projects. Some claimed that the foundation of an electricity trading company was necessary. As the continuous increase in economic growth rate puts more and more pressure on the energy sector, … [Read more...]

Electricity agency heads admit culpability in scam

Top officials at Vietnam's state-run electricity corporation have accepted responsibility for the fake electricity meter scandal in Ho Chi Minh City which rocked the nation earlier this year. At a meeting Thursday with the industry ministry, Electricity of Vietnam (EVN) general director Dao Van Hung and former chairman Dang Hung admitted they failed to discharge their management and oversight duties. Consequently, some ex-directors of EVN's subsidiary HCMC Electric Power Co. violated tender rules to purchase 312,000 untested and unapproved meters causing losses of VND185.7 billion (US$11.7 million) to the exchequer. A large sum of money also had to be spent to replace 287,000 meters and pay compensation to users over-billed because of the faulty meters. Eight HCMC Power Company officials, including its director and vice director, were arrested for their part in the scandal. The EVN top brass had earlier denied responsibility claiming decision-making in the … [Read more...]

Quang Ninh licenses Ha Long – Van Don highway project

The Quang Ninh Provincial People’s Committee on May 18th granted an investment certificate of Ha Long-Van Don highway and the National highway No.18, section from Ha Long to Mong Duong to the Cong Thanh and Phuong Thanh Investment and Construction Joint Stock Companies. The project will be undertaken under a BOT (Build-Operate-Trasnfer) contract, with a capital of VND14 trillion (including lending interest rate during construction). Of this, nearly VND12 trillion will be spent on building the Ha Long-Van Don highway. With a total length of nearly 60 kilometers, the Van Don – Ha Long highway starts at Km 102+300 of the National Highway No.18 in the Dai Yen precinct, Ha Long city. The end of the highway will connect to the main route to Van Don Airport which is scheduled to be built this year. Mr. Nguyen Duc Long, Chairman of the Quang Ninh provincial People’s Committee granting the investment certificate to the investor. (Photo: baoquangninh.com.vn) At the … [Read more...]

Protest over payout halts highway work in Quang Nam

Residents of a commune in Quang Nam Province have halted work on the national highway due to a disagreement over land compensation. Work stalls on National Highway construction Work on the National Highway 1A section running through central Quang Nam Province stopped after residents of Binh Nguyen Commune in Thang Binh District’s Ha Lam town blocked construction. Duong Viet Roan, deputy director of the Ministry of Transport's Department for Management of Traffic Work Construction and Quality, said 56 households in Thang Binh District had yet to agree to compensation rates. Several local women stood in front of an excavator and some lay in the path of machinery. At a recent meeting with provincial authorities, the Deputy Minister of Transport, Nguyen Ngoc Dong, said construction of the section needed to be completed by May 30. Local residents block highway work in land compensation row Local police were called to the site to protect construction workers and … [Read more...]

Save the Dong Nai River: experts

Scientist and experts have renewed their calls to the National Assembly and the Government to take prompt actions to save the Dong Nai River in Dong Nai Province. The 610km river is believed to be the third longest river in the country, running through 10 provinces and HCM City and supplying water to nearly 20 million people. Experts say that a planned residential project will affect the river's flow and have a negative impact on its ecology. The request was made at a workshop organised on Tuesday afternoon by the Viet Nam Union of Science and Technology Association, the National Institute for Legislative Studies and the Viet Nam River Network. The project, implemented by the Toan Thinh Phat Investment Architecture and Construction Joint Stock Company, was suspended in late March after receiving a huge wave of criticism from concerned scientists and experts after the company started to fill part of the river with rocks and sand last September. Vu Ngoc Long, president of the … [Read more...]

River-encroaching project in southern Vietnam should be scrapped as it breaks laws: experts

Experts have demanded a complete stop to a large project, now suspended, to build a residential area and improve landscapes by encroaching on the Dong Nai River flowing through the namesake province in southern Vietnam because, they said, it breaks many laws. >> Experts pinpoint severe environmental impacts of suspended reclamation project in southern Vietnam The demand was pressed at a seminar on sustainable development in river basins that was jointly held on Tuesday by the Vietnam Union of Science and Technology Associations and the Institute of Legislative Studies (ILS) under the Vietnamese National Assembly. At the event, experts expressed trenchant criticisms of a multimillion-dollar project regarding its violation of many laws and the potential adverse impacts on the environment, even though the developer has suspended it. The implementation of the Pegasus Residence project in Dong Nai Province was approved by the local People’s Committee in May 2014. Toan … [Read more...]