Regulating Electricity for Production

At a recent meeting with the Ministry of Industry and Trade in Hanoi, representatives of most corporations are mourning for their operating disruptions and damage caused by recurrent power cuts.

Blackout damage

Mr Nguyen Duc Thuan, Chairman of the Vietnam Leather and Footwear Association (Lefaso), said: Many shoe factors have power cut three days a week and even big producers in industrial parks in Binh Duong province where turned out 30 % of the country’s output suffered from power failure twice a week.

In fact, many companies will endure enormous damage as power cut lead to production halt. For example, a zinc pyrolysis factory lacks power in two days, all production systems in will be completely shut down in those days. It takes half a day to restart the whole system to resume production. Let alone, unexpected and frequent blackout can cause production system breakdowns.

Ms Tran Thi Huong, Director of Department of Industry and Trade of Ba Ria – Vung Tau province, said: “Ba Ria – Vung Tau is an important that industrial province but it is seriously suffering from power shortage. Moreover, the distribution of electricity is ridiculous because Ba Ria – Vung Tau province is generating 40 % of the country’s power output. However, blackouts are very frequent. With seven large steel mills, the local power outage will cause serious damage.”

Mr Dau Van Hung, General Director of Vietnam Steel Corporation, pointed out that his corporation witnessed eight days without electricity a month. As we had blackout in 25 % of working time, we will have to work more shifts and increased working hours and this certainly cause more pressure on electricity sources. Mr Hung asked the Electricity of Vietnam (EVN), the sole electricity utility, to review the power cut calendar as the current scheme is engendering huge losses for the steel industry.

Mr Thuan added: “I also know that EVN has also encountered difficulties in electricity distribution and electricity prices are lower than those in other countries. However, unstable supplies and unexpected blackouts will send more than half a million shoe workers into dilemma. Thus, the power distribution will be regulated nationwide, with priority given to export-driven industries and large-capacity production facilities.”

Ms Huong, meanwhile, said: “Why did the electricity industry not raise its voice when it makes a profit. This year, on fears of loss-making operations, it does not use oil to produce electricity although the Government has ordered sufficient power supply to ensure economic development.”

Representatives from corporations and business associations asked the Ministry of Industry and Trade to propose measures to ensure enough electricity for production and put an end to monopoly in electricity, citing they would be willing to purchase electricity at higher prices as long as they do not need to stop production.

EVN’s arguments

In reply to questions vis-à-vis power cut, Mr Dong Duc Khoi, Deputy General Director of Electricity of Vietnam Group (EVN), said the power supply for provinces and manufacturing units will be improved gradually from late May or June.

Growing surcharge caused difficulties in producing and supplying electricity in April while the level of water in northern reservoirs is rather low. Luckily, coal, oil and gas-fuelled electricity production increased. The breakdown of thermal power plants in Hai Phong and Quang Ninh and the instable operation of Son Dong and Cam Phat thermal power plants affected the electricity supply. April electricity output was estimated to reach 7.48 billion kWh, only equal to 95.1 % in March but up 16.1 % from April 2009. In the first four months, the power industry was forecast to generate 28.29 billion kWh, an increase of 19.3 % over the same period of 2009.

Mr Khoi also asserted that “EVN will closely direct and coordinate with localities to notice power cut schedule and put an end to multiple day blackouts.”

Industry and Trade Minister Vu Huy Hoang said: “Before public complaints about long and unnoticed power outage and full-week blackout in rural areas, the Ministry of Industry and Trade requested EVN and concerned branches to coordinate to strictly implement the Government’s direction and plans for power regulation. EVN will have to minimise power cuts and avoid unfair and rampant power outages amongst localities and enterprises.”

Minister Vu Huy Hoang also directed the immediate establishment of a workgroup to examine electricity supply in some business and industrial zones in Vinh Phuc province in May to know more about the situation and discuss solutions

Tags: Vietnam electricity, Vietnam energy, Vietnam power shortage