Minister of Industry and Trade Nguyen Hong Dien – Photo: N.KH
On the afternoon of October 25, the National Assembly discussed in groups the draft Law on Electricity (amended). This is the first time the Government has submitted amendments to this law and proposed to pass it through a one-session process.
According to Minister of Industry and Trade Nguyen Hong Dien, the draft has 60 additional articles, which are essentially regulations and policies for the development of new energy sectors; or mechanisms mentioned in decrees, circulars... institutionalized into law.
Supplementing mechanisms to attract investment
For example, with offshore wind power development, Mr. Dien pointed out that until now it is unclear who or which agency has the authority to decide on sea surveys, wind measurements, etc. Therefore, this law amendment is to clarify the authority to decide on investment policies for types of power sources, including offshore wind power.
The draft also adds a special mechanism for developing renewable energy and new energy, aiming to remove obstacles in investment. Because the reality is that the 8th power plan has been issued for a year now, but until now, investors are still "lazy, waiting for the mechanism, not daring to do it".
At the same time, the bill will supplement and adjust regulations related to the electricity price mechanism to promote the formation of a competitive retail electricity market. Supplementing regulations on the minimum electricity output in gas-fired power projects, gas prices must also follow the market. Electricity prices, transmission prices, dispatching prices, etc. will also follow the market, with State regulation.
The Minister of Industry and Trade said that the current electricity price is basically calculated based on the production price in the spot market compared to the selling price, which does not accurately and fully reflect the production cost, so it does not attract investment.
Therefore, according to Mr. Dien, electricity prices will move towards being calculated based on two components (electricity and capacity), gradually separating prices and transmission fees from electricity costs; hourly electricity price framework.
"Only then can we attract investors to pour capital into the transmission sector," he said.
However, Ben Tre delegate Nguyen Thi Le Thuy said that the current policy mechanism being developed is ambiguous, does not create stability to attract investment in the electricity industry, and is not safe for investors.
“The draft still shows great intervention in investors, which will be an obstacle and risk for investment activities. For example, the incentive mechanism, giving great authority to state agencies will lead to arbitrariness and disadvantages,” Ms. Thuy worries.
Concerns about problems arising during implementation
Also according to delegate Thuy, although the draft builds a competitive electricity mechanism, it has not yet separated the role of state-owned enterprises in calculating electricity prices from business sources, with the implementation of political tasks.
Delegate Tran Thi Kim Nhung from Quang Ninh delegation was concerned that if passed through a single session, it might be “risky” because some policies are not really clear. For example, the mechanism for handling cross-subsidy of electricity prices has been mentioned, but many of the sentences are leadership and directive rather than solutions.
Mr. Vu Hong Thanh – Chairman of the Economic Committee – acknowledged that there are projects, including power projects, that encounter problems related to planning during implementation. Therefore, he is concerned that if they are “hurriedly” revised but not according to planning principles, it will cause other problems.
“If we make hasty amendments, it will create more difficulties and be even more inappropriate. Therefore, the amendment of the law in one session will only amend what is clear and urgent. Issues that are unclear and not highly agreed upon will be left for later; this is also in line with the spirit of innovation in law making and should not be too complicated,” said Mr. Thanh.
Regarding the electricity operation license, delegate Nhung was concerned that the time limit of only 12 months would create a mechanism for asking for permission and would not be consistent with the policy of encouraging investment and creating favorable conditions for people and businesses.
Quang Ninh delegation delegate Ngo Hoang Ngan - Chairman of Vietnam National Coal - Mineral Industries Group (TKV) - also said that the term of the electricity operation license should be regulated according to the project life cycle.
For example, if a power plant needs 30 years of operation to recover its capital, it should be licensed once. Granting a license for only 12 months would create a mechanism of asking for and giving, making it difficult for businesses when many power projects take decades to become effective.
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