Vietnam state monopoly in electricity to end Jan 1

As of January 1 next year, Vietnam will officially apply a competitive power market mechanism under which various companies can compete to win to the right to generate and sell electricity, Deputy Prime Minister Hoang Trung Hai has confirmed.

With this scheme, power prices will be decided by market forces and not regulated by the government.

This has been operational since July 1 on a pilot basis, attracting 83 power generators, each of which has a production capacity of over 30 megawatts.

This pilot project has gained positive results.

Deputy PM Hai has ordered the Electricity of Vietnam (EVN), the country’s power monopoly, to set up investment plans for IT infrastructure, operation regulations and payment methods.

Besides, EVN was required to draft up a plan to establish power generation firms and submit it to the government in the third quarter.

He also asked the Ministry of Industry and Trade to make plans to set up the National Power Adjustment Association, with the participation of governmental agencies and major power generators.

The plan is expected to be submitted to the government for approval in the last quarter of this year. – Tuoitre

Tags: Vietnam electricity, Vietnam energy, Vietnam power shortage