Large users of electricity to directly join electricity wholesale market.
In addition to the five existing electricity corporations (north, south, central, Hanoi, and Ho Chi Minh City), major electricity users, especially manufacturing enterprises, will be able to connect directly to the electric grid (220kV and over 220kV), the Particular Design for a Competitive Wholesale Market conference held on March 25 was told.
Only Electricity of Vietnam (EVN) regulates the purchase and sale of electricity, resulting in prices being unattractive to investors, Mr. Nguyen Anh Tuan, Director of the Electricity Regulation Authority of Vietnam (ERAV) under the Ministry of Industry and Trade (MoIT) told the conference. "To maintain competitiveness, the number of enterprises involved in the electricity wholesale market will be expanded," he said.
Experts believe that if participation is expanded, new participants would be able to secure a similar position and the five electricity corporations. They need not work with these corporations, and could even sell electricity to other users, as stipulated in the relevant law.
After participation is expanded, electricity revenue and quality would improve, especially the retail price, which is expected to become more suitable with the laws of supply and demand, according to MoIT.
Despite difficulties relating to infrastructure and management and staff capacity, ERAV is committed to maintaining the pace of the project to create a competitive electricity market.
Vietnam's electricity market develops in three matters under the project: competitiveness in generation (in the 2005 to 2014 period), competitiveness in wholesale (in the 2015 to 2022 period), and competitiveness in retail (after 2020). The end of the first has passed and the second has now begun.
The generation of electricity has seen many positive signs, creating competitiveness among units generating electricity and enhancing capacity at electricity plants to cut electricity prices. However, the number of electricity plants directly participating in the market is said to be small, reducing competitiveness and transparency.