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Monopoly allows... EVN to cut power spontaneously
The Electricity of Vietnam, the only electricity provider in Vietnam, has been severely criticised for its spontaneous, unannounced power cuts, which have caused heavy losses for businesses and affected people’s lives.
Power cuts with durations of sometimes 12 hours a day and occurring on consecutive days have occurred in many localities, especially in rural areas (Dinh Quan, Tan Phu, Xuan Loc districts in Dong Nai, and Xuyen Moc district in Ba Ria-Vung Tau provinces in the south, for example), according to a report released by the Power Regulatory Agency under the Ministry of Industry and Trade.
Ho Nai Industrial Zone in Dong Nai province, and San Bay Water Plant in Da Nang city, two ‘important clients’, had their power cut for 11 consecutive hours on July 17, 2008.
Dr Vo Tri Thanh, Director of the International Integration Studies Department under the Central Institute for Economic Management, said the spontaneous electricity cuts without notice in advance should be viewed as blatant disrespect of consumers – a ‘product of the monopoly’.
Dr Le Dang Doanh, a senior economist, also said that the monopoly is now the problem in electricity supply. He has called on the government to compile a monopoly control law which would prevent unexpected power cuts, among other things.
Le Manh Hoan, Deputy General Director of Dinh Vu Steel Corporation, complained that the unexpected power cuts have caused his company heavy losses. Hoan said that it takes time to restart his workshops. Moreover, the company has had to pay for many other damages that have occurred in production as a result of the cuts.
According to the Ministry of Industry and Trade, electricity output is not sufficient to meet demand. The total usable capacity of the whole system in May and June was 12,500MW, while the figure decreased to 10-11,000 in early July, while the additional charge reached 13,500MW on hot days and 12,500MW on normal days. As a result, 20-30mil KWH have been lacking a day.
VNN
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