Power rationing worries firms

Electricity rationing has been implemented in the northern city of Hai Phong to deal with the serious power shortage this dry season.

Planned electricity rationing has been defined based on the amount of electricity apportioned to Hai Phong and average business consumption in the first half of last year.

Electricity rationing plans were announced at a meeting held by the city People’s Committee on March 11 with representatives of 14 districts and 67 major enterprises, whose power consumption totals 3 million kWh per day.

Many of the enterprises have expressed concern about the transparency of electricity rationing plan, and businesses already have to register their monthly electricity usage in order to help in power supply planning.

“Electricity rationing for March was based on average electricity consumption in the first half of last year,” said deputy director of Hai Phong MTV Electricity Company Ltd Tran Ngoc Quynh.

However, using such criterion creates a paradox, where the more enterprises save energy, the less electricity they will be apportioned, which would not encourage energy savings, according to investment manager of Vinausteel, Nguyen Dang Quang.

In addition, the priority for enterprises with modern energy-saving production lines was also a question to be pondered, as the electricity saved had reached its maximum level with the temporary production line, Quang said. The only solution to saving more was to buy completely new lines, which required large levels of investment while the amount of electricity saved would be negligible, he added.

Concern was also expressed about sudden power cuts, as this would affect the machinery, and could cause major losses to enterprises, Quynh said. A weekly and monthly rotating power cut was preferred.

Co-ordination between electricity suppliers and enterprises was essential, VSC-POSCO Steel Company proposed. Plans for electricity rationing should be widely distributed in advance so that businesses could plan their production timetables based on the schedule.

At the meeting, the People’s Committee also agreed to let enterprises propose their own electricity supply timetable.

With over 1,000 small- and medium-sized enterprises, electricity rationing would fall under the responsibility of local electricity suppliers.

However, power wastage was still common and exceeded real business rates of consumption, said Quynh. For example, the difference of 130,000kWh per day of the Noura Industrial Zone could be equal to an entire day’s energy consumption in Tien Lang District, he added.

According to estimates, 67 major enterprises in the city consume up to 43 per cent of the city’s total electricity supply, yet are currently using only 84 per cent of the amount they claim they need.

Hai Phong Electricity hoped enterprises would do more to save electricity, said Quynh.

He also added that Hai Phong Electricity in co-ordination with the city’s People’s Committee and the Department of Industry and Trade would try their best to ensure equality and transparency in electricity rationing and prevent under-the-counter electricity sales by energy suppliers.

According to national power supplier Electricity Viet Nam, the country will face a major power shortage of about 3 to 4 billion kWh, triple that of 2010, while demand for electricity is increasing.

In Hai Phong, power shortages totaled 3-4 million kWh per day, said Quynh.

“Power shortages undeniably have a negative affect on production” said Tran Dinh Long, who is in charge of electricity management at the Dinh Vu Steel Company.

Production could be reduced up to 40 per cent due to the shortage, he added. — VNS

Tags: Vietnam electricity, Vietnam energy, Vietnam power shortage