Faced with the criminal prosecution of some officials and financial imbalance, the Prime Minister hopes that EVN leaders and officials will soon overcome this difficulty because it is only a temporary one.
On the afternoon of January 13, Prime Minister Pham Minh Chinh worked with Vietnam Electricity Group (EVN).
According to EVN's report, 2023 is a year when the group will face many difficulties when there is a power shortage in the North in late May and early June. Input fuel prices for electricity production have decreased compared to 2022, but are still high, causing the group to continue to lose money and lose financial balance. Some officials and employees have been disciplined and criminally prosecuted.
At today's meeting, Prime Minister Pham Minh Chinh said the current difficulties of the electricity industry are more incidental and situational than systemic. "We must be calm, courageous and move forward firmly," he said, expressing that EVN's leadership team and employees will overcome the current challenges.
He requested EVN to restructure in the direction of balancing finances and overcoming limitations and weaknesses. The Prime Minister noted that this process must be associated with preventing and combating negativity and protecting and encouraging those who dare to think and dare to do. The management and operation of the electricity industry, especially the market-based prices, must have policies for social security beneficiaries.
Prime Minister Pham Minh Chinh speaks at a working session with EVN on the afternoon of January 13. Photo: VGP
Restructuring to improve corporate governance, according to Mr. Dang Hoang An, Chairman of EVN, is one of the goals that the group is accelerating this year. "EVN will soon issue a system of internal management regulations in the direction of thoroughly decentralizing and delegating power, combined with increased inspection, supervision and accountability," Mr. An informed.
Previously, at the end of 2023, a number of former EVN leaders were disciplined with reprimands for being responsible for the supply, causing a power shortage in the North in May and June 2023. In addition, the leader of the Electricity Trading Company (EPTC, under EVN) and three subordinates; the leader of EVN Binh Thuan was also arrested for violations in management and bidding.
After two increases in average retail electricity prices last year, by 7.5%, EVN still could not cover production costs. The group recorded its second consecutive year of production and business losses, about VND17,000 billion in 2023. This level decreased by more than VND9,000 billion compared to 2022.
2024 is forecast to be a difficult year for electricity supply. The Prime Minister reiterated the view that electricity is a national issue, covering all sectors, so "there must be no shortage for production, business and consumption under any circumstances".
The Government leader noted that the industry should exploit optimal power sources (including mobilizing renewable electricity and calculating imports to serve domestic demand) and stably operate the power transmission system, especially the 500 kV North-South transmission line.
"Learning from the incident in 2023, we must not let the most incidents occur during the peak of the hot season. The 500 kV line 3 from Quang Trach to Pho Noi must be completed by June at the latest," said the Prime Minister.
According to this year's electricity supply plan approved by the Ministry of Industry and Trade, commercial electricity output is nearly 262.3 billion kWh and the high scenario is 269.3 billion kWh. This level corresponds to a growth of 6.18-9.15%.
EVN said it has worked with coal suppliers (TKV, Dong Bac Corporation) and gas (PVGas) to ensure long-term fuel supply for electricity production. Hydropower reservoirs have also been increased in water storage, preparing for the 2024 dry season. In urgent cases, LNG gas power will be mobilized to supply the power system.
Prime Minister Pham Minh Chinh shared with leaders of the Ministry of Industry and Trade and EVN at the working session on the afternoon of January 13. Photo: VGP
However, to ensure no power shortage in the long term, EVN leaders recommended that the Prime Minister soon amend decisions on the mechanism for adjusting average retail electricity prices and price lists. EVN also "urged" the Government to soon issue mechanisms to encourage the development of self-produced, self-consumed rooftop solar power without selling electricity to the system (especially rooftops of factories and industrial parks).
With the Ministry of Industry and Trade, this group proposed to soon submit to the Prime Minister for approval the policy of importing 225 MW of hydropower from Laos to connect to the 2220 kV Nam Mo - Tuong Duong, Nam Kong - Bo Y lines, in which Nam Chien hydropower plant (104 MW) is already in operation, ready to sell electricity to Vietnam to increase power supply for the North.
In response to EVN's recommendations, the Prime Minister agreed to assign ministries and branches to implement them in a "focus, key direction, in accordance with the planning". He also urged the Ministry of Industry and Trade to promptly complete the dossier to submit to the Government mechanisms to encourage the development of self-produced and self-consumed rooftop solar power. The Ministry of Industry and Trade was assigned to submit to competent authorities for consideration and decision on the amendment of the Electricity Law, including the content on renewable energy.
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