Move to a competitive power generation market delayed

There had not been enough preparation to ensure the efficient operation of a competitive power generation market by the beginning of next year and its introduction would have to be postponed, Deputy Minister Hoang Trung Hai said yesterday.

Three major problems had caused the delay," Hai said

First, some power generating units had yet to install technology for the collection and processing of information to calculate their power prices.

Second, some regulations that had been amended had not yet been verified.

Third, transferring the sale and purchase agreements from a State contract to a market contract had faced difficulties.

Hai asked the Ministry of Industry and Trade and other relevant agencies to complete the preparations for a further assessment of the situation in February, before a decision could be made on the timing for the entry into a competitive power market.

The ministry was also asked to finalise a plan for monitoring the country’s power system throughout the year, especially hydro electricity plants, to ensure water use efficiency and power supply in the dry season.

A competitive electricity market aims to ensure competition in power production and pricing, improve efficiency and attract more funding for power generation.

As the power generation market develops, customers will have more opportunities to select power providers.

The market will operate under the model of a cost-based pool in which power producers will charge prices based on the market.

vietnamnet

>   Vietnam falls in WEF ranks (16/12/2011)

>   In 2011, Vietnamese consumers feel dizzy with shocking news (16/12/2011)

>   80 percent of handicrafts businesses drag out their miserable existence (16/12/2011)

>   2012 remains challenging for businesses (16/12/2011)

>   Vegetable and fruit exports hit US$600 million (15/12/2011)

>   Pushing up pangasius export to the U.S (15/12/2011)

>   Pangasius at a crossroads (15/12/2011)

>   Japan invests in local processing industry (15/12/2011)

>   Seafood exports to reel in $10 billion by 2020 (15/12/2011)

>   Korean firms advise Vietnamese exporters (15/12/2011)