Power plants complain about financial losses

Investors of power plants in the Central Highlands province of Kon Tum say they are losing money as they have been told to cut production because local transmission lines lack sufficient capacity.

Nguyen Duc, director of the province’s Electricity Department, said the transmission line capacity was only 100MW, while the total capacity of the small – and medium-sized power plants was 160MW.

EVN’s (Electricity of Viet Nam) Central Power Company, the upper manager of the local electricity department, was drafting a plan to upgrade the transmission line, reported Sai Gon Giai Phong (Liberated Sai Gon).

“Plants must reduce production every day, including during peak hours,” Duc said.

Investors of several of the plants, which had no water reservoirs, complained, pointing to financial losses.

Nguyen Thi Hue Ly, investor of the 3.6-MW Dak Pone 2 power plant, said her plant had been asked to lower or cut productivity to zero only after one year in operation.

An investor of another plant, the Dak Pone, said it had to cut its supply 23 times since the beginning of the year, causing losses since the investment came from bank loans.

According to agreements with the local electricity department, the department has responsibility to use the full capacity of power plants invested in by the private sector. — VNS

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial