Proposal to expand customers to buy electricity directly, not through EVN

In the draft Decree guiding regulations in the Electricity Law on the direct electricity trading mechanism, which is seeking comments, the Ministry of Industry and Trade proposes that large electricity users be allowed to participate in direct electricity trading. Participation conditions are that customers using large electricity are connected to a voltage level of 22kV or higher and have an average consumption of 200,000 kWh per month.

Commenting on this draft, the Vietnam Confederation of Commerce and Industry (VCCI) proposed to lower the threshold for average electricity consumption to participate in direct electricity trading, especially in cases of cross-traffic trading. separate wire.

According to VCCI, many smaller-scale businesses need to use renewable electricity to meet the requirements of export partners or international standards.

“These businesses want to buy electricity directly from renewable power sources,” the federation said, adding that the draft regulations will limit the participation of many businesses in need. Especially in the case of purchasing electricity through private lines, although this case does not have a significant impact on the national electricity system.

In fact, regulations on large electricity users are stipulated by the Government in Decree 80 on the direct power purchase and sale mechanism (DPPA) between renewable energy generators (solar, wind…) and large electricity users. According to data from power companies, about 7,700 customers are eligible to buy and sell directly, equivalent to 40% of total electricity consumption in the country.

Chairman of the Board of Directors of Vietnam Electricity Group (EVN) Dang Hoang An once said that it is possible to create a direct electricity trading market without limiting sellers and buyers.

Many associations and foreign business representatives have proposed removing this limit. However, experts also believe that maintaining the limit threshold for large electricity consumers is necessary in the early stages of applying this new mechanism, creating a safe buffer zone for the policy.

In addition to the proposed threshold of 200,000 kWh per monththe operator also plans to add regulations on reviewing large electricity users every year.

However, VCCI believes that this regulation will lead to customers who are currently eligible to buy and sell electricity directly and may not be able to continue doing so in the following year. The reason is because they reduced electricity consumption in the previous year.

According to this organization, reducing a customer’s electricity consumption can come from reasons such as reducing orders, applying energy-saving devices, or adding other power sources. Therefore, removing these customers from being able to buy and sell electricity directly will create additional risks for power purchase contracts between customers and renewable energy producers.

“This is not necessary because a customer does not meet the consumption level and does not cause any negative impact on the national electricity system,” VCCI assessed.