The draft Circular applies to organizations participating in the electricity wholesale market, including wholesalers, energy generator businesses, electricity system and market operators, electricity transmission units.
This draft Circular stipulates that as to thermal power, the ceiling price is determined each year and adjusted each month depending on the heat loss rate of generators, the performance degradation coefficient over the operating time of generators, input material prices, and variable prices according to energy purchase contracts. The floor price is VND1/kWh.
Regarding hydroelectric power, the floor price is VND0/kWh, while the ceiling one for every generator group is calculated each week by the operating unit of the electricity system and market. The announced price must go along with input parameters for calculation like water value, the variable cost of the most expensive DO oil thermal power unit in the power system, the average of all ceiling prices from all thermal power generator groups joining in the market that month.
In addition, hydroelectric power plants directly taking part in the market are responsible for offering prices in compliance with regulations of floor and ceiling prices for electricity. They must satisfy the water use demands of local people in the downstream areas as well as other hydrological constraints.
The draft Circular is expected to be released on June 30 and come into effect from July 15.
In related news, on March 13 in Con Dao District, the delegation of the Industry and Trade Ministry had a working session with the People’s Committee of Ba Ria – Vung Tau Province about the grid power supply project in this district.
Vietnam Electricity (EVN) proposed that the Government Office support the Prime Minister in making a decision to adjust investment policies for this project, and that the Natural Resources and Environment Ministry consider the appraisal results of the Environmental Impact Assessment Report.
EVN also asked for approval from the People’s Committee of Ba Ria – Vung Tau Province for the land use plan in 2024 of Con Dao District for the project to be launched as soon as possible.
In his conclusion speech, Deputy Minister Nguyen Sinh Nhat Tan of the Industry and Trade voiced that the province urgently addresses current issues so that the assessment report can be submitted to the Prime Minister at the earliest convenience. Unless the project can start this April, it will drag on for 1-2 years, which will affect the project capital.
