The official launch of Vietnam ’s competitive power generation markethas been postponed three months to next April instead of the beginningof next year as scheduled.

Deputy Prime Minister Hoang Trung Hai said on Dec. 13, there had notbeen enough preparations to ensure the efficient operation of acompetitive power generation market, which had been piloted since lastJuly.

“Three major problems had caused the delay,” Hai said

First, some power generating units had yet to install technology forthe collection and processing of information to calculate their powerprices.

Second, some regulations have been amended but have not yet been tested.

Third, transferring the sale and purchase agreements from a State contract to a market contract had faced difficulties.

Hai asked the Ministry of Industry and Trade and other relevantagencies to complete the preparations for a further assessment of thesituation in February, before a final confirmation could be made on thetiming for the entry into a competitive power market.

Theministry was also asked to soon finalise a plan for monitoring thecountry’s power system throughout the year, especially hydro electricityplants, to ensure water use efficiency and power supply in the dryseason.

A competitive electricity market aims to ensurecompetition in power production and pricing, improve efficiency andattract more funding for power generation.

As the power generation market develops, customers will have more opportunities to select power providers.

The market will operate under the model of a cost-based pool in which power producers will charge prices based on the market.

As scheduled, Vietnam will run a competitive power generationmarket until the end of 2014 before a competitive power wholesale marketis introduced in 2015. The whole electricity sector will be fullyoperated under market mechanisms after 2020 with the launch of acompetitive power retail market./.