What does EVN report about leadership responsibility for power shortage?

Organize many review conferences

Vietnam Electricity Group (EVN) has just sent the Ministry of Industry and Trade the results of the implementation of Inspection Conclusion No. 4463/KL-BCT dated July 10 of the Ministry of Industry and Trade.

In the report sent to the Ministry of Industry and Trade, EVN said: Based on the authority and decentralization of personnel management, EVN's Board of Directors and EVN's General Director have organized review conferences to consider the responsibilities of collectives and individuals related to the shortcomings, shortcomings, and violations mentioned in the inspection conclusion.

That is the conference to review and consider the responsibilities of relevant collectives and individuals chaired by the General Director of EVN; the conference to review and consider the responsibilities of collectives and individuals chaired by the Board of Members (BOM) of EVN.

Inspection conclusion No. 4463 pointed out a number of shortcomings, defects, and violations in the management and operation of electricity supply by EVN and its member units related to electricity supply.

In addition, on the mornings of August 25 and 28, Mr. Nguyen Canh Toan, Vice Chairman of the State Capital Management Committee at Enterprises and Mr. Dang Hoang An, Chairman of the Board of Directors of EVN, co-chaired the conference to review and consider the responsibility of the EVN Board of Directors and individuals who are former Chairman of the Board of Directors of EVN, former members of the Board of Directors of EVN, and current members of the Board of Directors of EVN.

On August 30, EVN sent a report to the State Capital Management Committee at Enterprises on the results of the review and consideration of responsibilities for groups and individuals related to the shortcomings, shortcomings, and violations stated in the Inspection Conclusion.

Currently, EVN is waiting for instructions from the State Capital Management Committee.

Hydropower operation to reduce costs for EVN

In the report, EVN also explained the direction and operation of hydropower reservoirs, when the inspection conclusion stated that the direction to lower the water level for the end of 2022 caused the water level of the reservoirs to decrease compared to the water level in the approved power system operation plan, affecting the regulation and preparation of water for power generation in the dry season of 2023. This is not in compliance with the plan approved by the Ministry of Industry and Trade in Decision No. 3063/QD-BCT dated December 31, 2021.

According to EVN's explanation, in June 2022, the group reported to the Prime Minister "Due to favorable hydrological conditions, water flow in all three regions is better than the average of many years, it is forecasted that in 2022, EVN will optimally mobilize the power system, hydropower output is expected to reach a record (96.4 billion kWh), 14 billion kWh higher than the annual plan approved by the Ministry of Industry and Trade" and "implement optimal mobilization of power sources (increase hydropower, reduce high-cost sources such as imported coal) to reduce system costs.

"This is a solution to help reduce EVN's financial difficulties during the period when input fuel costs for electricity production (coal, oil, gas) are increasing, and the average retail electricity price has not been adjusted for a long time since the last adjustment on March 20, 2019," EVN stated.

EVN affirmed that it has based on the hydrological situation of the regions to make reasonable adjustments to maximize the storage capacity of reservoirs in the Northern region. The actual mobilized hydropower output in the regions is different from the approved Plan in Decision No. 3063/QD-BCT, especially in the Northern region, to ensure electricity supply for the North in 2023.

According to EVN, the directions and instructions of the EVN Board of Members on mobilizing hydropower in the second half of 2022 do not affect the security of power supply in the dry months of 2023 for the power system, especially the Northern power system, because the actual exploitation of hydropower reservoirs in the North is 5.18 billion kWh lower than the plan of the Ministry of Industry and Trade. EVN requests the Ministry of Industry and Trade to accept this explanation.

Resolution 129 does not cause coal shortage for electricity

EVN also explained to the Ministry of Industry and Trade the impact of Resolution No. 129 on ensuring coal fuel for electricity production.

According to the conclusion of the Ministry's inspectorate, Resolution No. 129/NQ-HDTV of the EVN Board of Members and EVN's directives on coal preparation for generation are one of the main causes of local coal shortages for electricity production in 2022-2023.

According to EVN, in 2019, 2020, 2021 and 2022, the volume of coal for electricity production according to the demand for mobilizing output from thermal power plants was fully met. The implementation of Resolution No. 129 of the EVN Board of Members did not cause additional difficulties for power generation units related to purchasing imported coal for electricity production, while contributing to effective management of input fuel costs, reducing pressure on increasing average retail electricity prices in the years 2019-2021.

“Resolution No. 129 is not the cause of obstacles in purchasing coal and ensuring fuel for power generation,” EVN affirmed.

The coal price provisions in Resolution No. 129 are effective for coal supply in 2019, but in the following period, the Board of Directors continues to apply this provision. The purpose is to control costs and the Board of Directors does not object, the Board of Directors of EVN recognizes that the application of these regulations is still an effective tool to manage and monitor fuel purchase costs of power generation units managed by EVN.

However, EVN's Board of Directors has also issued resolutions adjusting the principles and time of applying the coal price ceiling in each period, both meeting the requirements of cost control and creating conditions for units to buy enough coal for electricity production.

EVN requests the Ministry of Industry and Trade to accept the above explanation regarding Resolution No. 129.

Vietnam Electricity Group expressed its wish to receive the attention and recognition of the Ministry of Industry and Trade for the results of the remediation and repair that EVN has achieved, taking into account the contributions of the electricity sector's employees in ensuring national energy security in the past time.

EVN hopes to create favorable conditions for the group to continue to overcome and correct existing shortcomings and weaknesses in order to improve its capacity and efficiency in managing and operating electricity supply, fulfilling assigned political tasks, contributing to ensuring safe and stable electricity supply to serve socio-economic development and people's daily needs.

Power shortage inspection: Unannounced power cuts occur on a large scale The Inspectorate of the Ministry of Industry and Trade pointed out that the emergency load shedding led to sudden, unannounced power outages on a large scale for customers using electricity for daily life, production, and business.

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