EVN paid unjust money, many ministries suffered consequences due to violations of the Ministry of Industry and Trade

Wrongly applied preferential electricity purchase price, payment "difference" of nearly 1,500 billion

The Government Inspectorate has just announced the conclusion of the inspection of compliance with policies and laws in the management of planning and investment in construction of power projects according to Power Plan 7 and adjusted Power Plan 7.

Regarding violations and shortcomings in advising on the issuance of Decision 13 on the mechanism to encourage solar power development, the Government Inspectorate said that the Ministry of Industry and Trade had shortcomings and violations when advising on the mechanism to encourage solar power projects in Ninh Thuan after Decision 11/2017 expired, leading to 14 projects enjoying the preferential FIT price of 9.35 cents/kWh for 20 years, which was not in accordance with regulations.

Specifically, although the subjects to be applied the price of 9.35 cents/kWh stated in Resolution 115 are solar power projects that have been decided by the Prime Minister or have written approval for implementation within the national power development plan with a total capacity of 2,000 MW.

However, the Ministry of Industry and Trade has advised and expanded the scope of FIT price application to projects already included in the power development planning at all levels. This, according to the conclusion of the Government Inspectorate, is “contrary to Resolution 115 of the Government and the conclusion of the Prime Minister”.

As a result, 14 solar power projects enjoyed a preferential price of 9.35 US cents/kWh for the wrong subjects. As a result, from 2020 to June 30, 2022, the total amount that EVN must pay is about VND 1,481 billion more than the payment according to the correct subjects in Resolution No. 115.

"The responsibility belongs to the Ministry of Industry and Trade with the role of leading advisor" - the inspection conclusion affirmed.

Many solar power projects violate regulations because the Ministry of Industry and Trade gives advice against regulations. Photo: Ngoc Long

The conclusion of the Government Inspectorate clearly stated that the Ministry of Industry and Trade also advised on the conditions for grid-connected solar power projects to apply the FIT price of 7.09 UScent/kWh in Clause 1, Article 5, Decision 13, which is not in accordance with the conclusion of the Government Standing Committee.

At the time of inspection (June 2022), the Ministry of Industry and Trade had not yet advised the competent authority to issue an electricity trading mechanism to be applied nationwide from January 1, 2021 after the FIT price under Decision No. 13/2020/QD-TTg expired according to the assigned tasks.

Many related ministries

The inspection conclusion stated that the main responsibility for the above shortcomings and violations belongs to the Ministry of Industry and Trade in its advisory role.

Regarding the consultation on conditions for grid-connected solar power projects to apply the FIT price of 7.09 UScent/kWh, in addition to the main responsibility of the Ministry of Industry and Trade, there are also responsibilities of relevant ministries and agencies (Finance, Justice, Planning and Investment, Natural Resources and Environment, Agriculture and Rural Development, Science and Technology, Construction, State Capital Management Committee at Enterprises, Government Office and EVN) because they have agreed with the proposed plan of the Ministry of Industry and Trade.

Regarding the 14 projects that are enjoying incorrect FIT prices mentioned above, the Government Inspectorate requested the Ministry of Industry and Trade to take the lead in proposing economic solutions when EVN "shoulders" more than 1,400 billion VND for purchasing electricity from the wrong subjects.

In addition, the Government Inspectorate also discovered that solar and wind power projects had been recognized as having commercial operation date (COD) and enjoying FIT prices without having received written approval from competent state agencies for the results of the investor's construction acceptance. This also caused loss of state assets.

Therefore, this unit requested the Ministry of Industry and Trade to coordinate with Vietnam Electricity Group to review and handle. During the review process, if signs of criminal law violations are detected, it will be transferred to the investigation agency for consideration and handling according to regulations.

Similarly, 54 projects (with a total capacity of 10,521 MW) were approved by the Ministry of Industry and Trade for the Prime Minister to be added to the adjusted Power Plan VII based on the proposals of the People's Committees of the provinces and investors, even though there is no national solar power development plan until 2020.

Source