|
New peak hour power pricing policy unreasonable: Producers
Local businesses complain that a new pricing policy meant to minimize the use of electricity during peak hours has forced them to cut back on production.
Since March 1, businesses have been charged almost double the normal cost if they use electricity during peak hours between 9:30 a.m. and 11:30 a.m. and between 5 p.m. and 8 p.m.
Industry and Trade Deputy Minister Do Huu Hao said the new calculation method for power prices is aimed to encourage businesses to adjust their production plans and reduce power consumption during the peak hours.
However, the enterprises say it is unreasonable that the time between 9:30 a.m. and 11:30 a.m. is considered “peak” since it is typically the time when all businesses are engaged in manufacturing.
Tran Van Thai, who owns a rice mill in the Mekong Delta province of Tien Giang, said these days he often has to switch the machines off for two hours in the morning until 11:30 a.m. But he still has to pay his workers for doing nothing during the unwanted interval.
Many other mills in Tien Giang Province also say they try to avoid operations during peak hours since they cannot afford the higher power costs.
Pham Xuan Hong, chairman of Ho Chi Minh City-based Saigon 3 Garment Company, said his company operates from 7:30 a.m. until 6 p.m., which means it will have to pay for three on-peak hours now.
Until March 1, only power used from 6 p.m. to 10 p.m. was subject to peak rates.
Hong said his company will have to pay VND700 million (US$40,200) more for electricity under the new calculation, calling the adjustment in the peak hour schedule “difficult to understand.”
Duong Ngoc Minh, general director of Tien Giang-based Hung Vuong Seafood Company, said his company has five processing factories and more than 6,000 employees working continuously in shifts.
Unlike other businesses, a seafood processing company cannot just turn the machines on and off to avoid peak hours without spoiling the product, he said.
A manager at the Simmy Seafood Company in Long An Province, said now is not a good time for any increase in power prices as seafood companies are trying to lower production costs by 20-30 percent to deal with flagging demand.
If businesses have to increase prices to pay higher power costs, consumption will plummet further, the manager said.
Deputy Minister Hao has suggested businesses organize their staff to work more during night shifts after 8 p.m. to save power costs.
However, seafood and garment companies say it is hard to ask their workers – mostly women – to work late hours. Moreover, salaries for night shift workers are usually 30 percent higher than normal, which will also push production costs upward.
Nguyen Huu Chi, chairman of the Tien Giang Province People’s Committee, said the increased on-peak power tariffs will make it even more difficult for businesses who are already struggling with losses caused by the global economic downturn.
The committee last Thursday submitted a proposal to the Ministry of Industry and Trade, calling for a delay in the implementation of the policy on peak hour power prices in an attempt to help businesses deal with financial difficulties and maintain jobs for local workers.
Hao said his ministry would consider any proposal from localities concerning either the new calculation method for peak hour power use or the recent price hike of 8.9 percent, and make necessary policy adjustments.
The average retail electricity price has increased 8.9 percent to VND948.5 (5 cents) per kilowatt-hour since March 1. The Ministry of Industry and Trade said the increase could slow the country’s planned GDP growth of 6.5 percent by between 0.05 and 0.07 percent. This would also see the CPI increase by between 0.25 and 0.3 percent, according to the ministry.
Vietnam plans to generate around 83.3 billion kilowatt-hours of power this year. The state-owned utility Electricity of Vietnam, or EVN, is expected to produce 57.44 billion kilowatt-hours, according to the Ministry of Industry and Trade.
Earlier this month, EVN had warned of a possible power shortage during the dry season due to a lack of fuel for the power plants run by the Vietnam Oil & Gas Group, or PetroVietnam. The plants supply around 11 percent of the utility’s annual output.
Tuoi Tre
|
