Deputy Prime Minister Hoang Trung Hai has called for plans for the a competitive electricity market.

Competitive power market to be put into place next year

Hai touted some positive signals after the first 4 months of the plan\'s trial run. Most power producers been offering competitive prices, and power plants have become more adept at implementing IT systems, he said.

On the other hand, the trial run has also exposed shortcomings, such as failures in centralised systems that monitor and control power production facilities, the inability to accurately forecast demand.

In preparation for the new market-regulated system, which would begin on January 1, 2012, Hai urged the Ministry of Industry and Trade (MoIT) to make inquiries and proposals to the Government by November 15, so as to establish 3 power generation companies. These companies would operate under the Electricity of Vietnam Group (EVN).

MoIT will also have to complete their plan for establishing an electricity regulating board, establish a plan for gas supply, as well as ensure and monitor a steady source of gas.

Other changes will include setting a ceiling price for thermal power plants, which would be adjusted monthly based on the price of fuel, as well as regulations concerning the contracts between fuel suppliers and power generation plants.

Hai also asked EVN to come up with a detailed plan for promoting a competitive power market, which would start in next year. This plan should be submitted to MoIT also before November 15.

EVN will also gradually adjust the power prices so that plants can make up for losses due to currency inflation, interests and rising costs.

Also, the Oil and Gas Group must instruct all its subsidiaries to cooperate with EVN in supplying them with enough gas in the southeastern region.