EVN has sent a document to the Ministry of Industry and Trade (MOIT) and the Electricity Regulatory Authority, reporting a plan to sell electricity to clusters of hydropower plants - Nam Mo, Nam Kong and Nam E-moun in Laos.

These power plants are allowed to import electricity from Vietnam under the Prime Minister’s decision. EVN has signed seven PPA (power purchase agreements) with the investors of the Laos power plants.

During the investment process, the power plants in Laos have demand for buying electricity from EVN for experiment and activation (the plants only connect to Vietnam’s grid). In addition, some power plants need electricity to carry out construction because they lack local supplies.

The electricity transmission from Vietnam to Laos is problematic. EVN fears that if electricity transactions are not legalized in detailed contracts, Vietnam will lose electricity and turnover. This may also cause EVN to violate regulations on customs tax declaration about export products.

“Currently, EVN continues to record electricity volume transmitted from Vietnam to Laos, but there is still no clear mechanism for the electricity volume,” an EVN senior executive said, citing figures about technical losses of 50 MWh/month for each group of power plants in May and June.

EVN’s records show that from May to July, electricity output transmitted from Vietnam to Laos was 151.1 MWh for Nam Kong and 161.5 MWh for Nam Mo clusters.

Meanwhile, EPTC (Electricity Power Trading Company), which is authorized to negotiate with the investors in Laos, has suggested offsetting the delivered and received (sell/buy) electricity volume.

EPTC has initialed the draft of PPA with investors, with the selling price from EVN to Lao plants 11.2 US cents per kwh, higher than the price EVN buys from Lao plants at 6.95 US cents. This will cause a difference in revenue.

EVN said if it accepts the proposal (setting the average electricity price at $6.95 cent per kwh, it may lose $6,691 in the transaction with Nam Kong and $6,644 with Nam Mo clusters.

Thus, the estimated lifetime (25 years) loss of revenue is about $1.3 million for the two plant clusters.

Nam Kong 2 and Nam Kong 3 began commercial operation last May, and Nam San 3A-3B last June. Meanwhile, other clusters of plants, including Nam Sum – Nong Cong and Monsoon – Thach My, are still in the investment period.

EVN leaders stressed that there is no sufficient legal basis for offsetting buying and selling output.

Huy Le