Amendments pursued for Vietnam's electricity law

A competitive retail power market soon.

This is what members of Vietnam's National Assembly urged the Government to implement earlier than the scheduled date of 2022.

This will provide a wider choice and help lower costs for consumers.

They pointed out measures that would ensure fairer competition in the electricity market during a discussion of the draft amendments to the Electricity Law.

The suggestions included restructuring the power sector and strengthening the independence of each power company.

The Electricity Law, which came into effect on July 1, 2006, needed further amendment with its limitations that challenged the electricity industry, congressional members told the fourth session of the 13th National Assembly.

The law requires power users to bear a number of fees such as generation fee, transmission fee, distribution fee and regulator fee. Quang Tri Province repersentative Ha Sy Dong said that the many fees would increase electricity prices, which would negatively affect the life of citizens as well as businesses.

A number of the delegation suggested excluding the regulator fee, saying it came under government management and so should be financed from the State budget.

Several regulations based on electricity prices and investment were also said to be no longer appropriate to the country's economic development, preventing investment and energy saving.

Electricity pricing should also take into account constant changes in the market and other factors, such as exchange rates or hydrography conditions.

The plan for electricity development should also take into account schemes for other renewable energies such as wind and nuclear power.

NA deputies also agreed to extend provincial People's Committees' plans for electricity development from a five-year period to 10 years to comply with the national master plan.

Amendments should aim at increasing responsibility while limiting the monopoly of power production and supply companies and protecting customer rights, according to many deputies.

For more.