Hiep Phuoc wants to hand over power grid to EVN

Hiep Phuoc Power Company expects to arrive at an agreement with Electricity of Vietnam (EVN) in a meeting this Saturday to hand over its power grid to the State utility company in early July to avoid more losses, an executive said.

“We will hold first negotiations with leaders of EVN this Saturday in Hanoi on conditions and the time of the grid handover. We expect to transfer our power grid and the right to distribute power to EVN by early July,” said Nguyen Hong Tien, manager of the technical division of Hiep Phuoc.

Tien told the Daily on Thursday that if the two parties reach an acceptable deal, EVN will take over the grid and distribution network linking the power plant in Nha Be District to its three major clients namely Tan Thuan Export Processing Zone, Hiep Phuoc Industrial Park and Saigon South urban area.

Tien said that by that time, Hiep Phuoc would still be the operator of the power plant and EVN would be the power distributor for the whole region. Hiep Phuoc also expects to sell all electricity to EVN at prices changeable with the fuel price on the market.

“However, the grid handover must be appraised by the Ministry of Industry and Trade and finally approved by the Government,” said Tien of Hiep Phuoc.

Since 2001, Hiep Phuoc power plant, which has total supplying capacity of over one billion kilowatt hours each year, has been a key power supplier for some 200 enterprises in the export processing zone and industrial park as well as thousands of families living in the southern residential area. The selling prices are of 5-7 U.S. cents per kilowatt hour.

Besides, the power plant also sells 50% of its generated power to EVN at a price of 17 cents per kWh.

Dang Hoang An, deputy general director of EVN, told the Daily on Thursday that the negotiations could prove very difficult because this issue is unprecedented.

An of EVN also said that the agreement, if reached, will need the participation of other related ministries such as the Ministry of Finance and the State Audit of Vietnam to reassess the value of Hiep Phuoc’s power grid. The Ministry of Investment and Planning will also be involved for the probable change of Hiep Phuoc’s investment certificate.

Late last month, Hiep Phuoc suggested collecting a surcharge of 12 cents per kWh on 60 enterprises in Hiep Phuoc Industrial Park to compensate its huge losses of some US$200,000 per day due to the high fuel cost. However, the power producer had to make concessions after strong objections from the enterprises.

Tags: Hiep Phuoc Power