Workers of EVN Hanoi (Photo: VNA) Hanoi (VNA) -Deputy Prime Minister Vuong Dinh Hue has requested the Electricity ofVietnam (EVN) to review loss-making projects to ensure investment flows for itsproduction and business.
At a working session with the group’s representatives on April 26, the DeputyPM said modern technologies should be applied to reduce labour costs,electricity losses and increasing transparency in the power price calculation.
He also asked the national power company to propose tariffs based on trueproduction costs this year. The move aims to ensure EVN’s profits and createfavourable conditions to attract investment in renewable energies, and at thesame time to curb inflation.
EVN should also clarify the results of its restructuring process of the pastfew years and its upcoming plans, including privatisation, divestment, buildinga competitive power generation market, human resources and technologies, headded.
The group’s calculations show that its total production costs this yearare expected to increase to more than 7.2 trillion VND (316.7 million USD) dueto the fluctuation of coal, gas and oil prices.
EVN General Director Dang Hoang An said earlier this year thatsome input costs, especially coal, have increased continuously since 2015but have not been calculated into electricity prices. Coal prices which rose 7percent from December 2016 accounted for over 4.7 trillion VND of thetotal price increase.
However, EVN says it has set a range of plans to knock off costs of about 3trillion VND from the projected increase. Last year, its total revenue reached 278trillion VND, posting a 14 percent year-on-year rise. All units reportedprofits in 2016.
The deputy PM asked the group to focus on balancing capital every year in the2017-20 period to save at least 10 percent a year.
The ministry, EVN and relevant agencies plan to complete the privatisationprocess of Power Generation Corporations in the third quarter of the year.
Duong Quang Thanh, EVN Chairman, said it would apply automation at all units,especially power transmission and distribution.
The Central Power Corporation has cut about 1,000 people from its payroll byinstalling two million electronic metres.-VNA
At a working session with the group’s representatives on April 26, the DeputyPM said modern technologies should be applied to reduce labour costs,electricity losses and increasing transparency in the power price calculation.
He also asked the national power company to propose tariffs based on trueproduction costs this year. The move aims to ensure EVN’s profits and createfavourable conditions to attract investment in renewable energies, and at thesame time to curb inflation.
EVN should also clarify the results of its restructuring process of the pastfew years and its upcoming plans, including privatisation, divestment, buildinga competitive power generation market, human resources and technologies, headded.
The group’s calculations show that its total production costs this yearare expected to increase to more than 7.2 trillion VND (316.7 million USD) dueto the fluctuation of coal, gas and oil prices.
EVN General Director Dang Hoang An said earlier this year thatsome input costs, especially coal, have increased continuously since 2015but have not been calculated into electricity prices. Coal prices which rose 7percent from December 2016 accounted for over 4.7 trillion VND of thetotal price increase.
However, EVN says it has set a range of plans to knock off costs of about 3trillion VND from the projected increase. Last year, its total revenue reached 278trillion VND, posting a 14 percent year-on-year rise. All units reportedprofits in 2016.
The deputy PM asked the group to focus on balancing capital every year in the2017-20 period to save at least 10 percent a year.
The ministry, EVN and relevant agencies plan to complete the privatisationprocess of Power Generation Corporations in the third quarter of the year.
Duong Quang Thanh, EVN Chairman, said it would apply automation at all units,especially power transmission and distribution.
The Central Power Corporation has cut about 1,000 people from its payroll byinstalling two million electronic metres.-VNA
VNA
