Viet Nam seeks to develop competitive power industry

Michael Giberson

From Viet Nam News:

Ceiling prices set in accordance with each power station’s capacity technology and costs have been suggested for Viet Nam’s proposed competitive energy market in Viet Nam.

British energy-industry consultant Campbell Carr made the proposal at a seminar to discuss the design of a competitive power market in Ha Noi yesterday.

The Trade and Industry Ministry’s Electricity Regulatory Authority of Viet Nam, ERAV, organised the discussion as part of the project to overcome difficulties in organising the electricity market.

The Public-Private Infrastructure Advising Facility, PPIAF, sponsors the project; Campell Carr is its principal consultant.

Application of a ceiling price would avoid the risk of market domination by generators who might otherwise increase their prices to influence the market price, the consultant said.

A floor price should apply but it would need to be the same for all power stations to avoid the risk of market manipulation through lower prices.

I don’t know enough about Viet Nam’s power industry to comment productively, but if I were evaluating the proposal I’d ask the consultants about other markets in which similar approaches have been successfully implemented.


3 thoughts on “Viet Nam seeks to develop competitive power industry

  1. This blog was the best thing it happens to me today. Why ? Well I´m doing some research on electricity retail models (besides the economic part, more on the technology behaviour) and for the other side I also do some sports, 3 days running 10 km a day and 3 days swimming 2 km a day, one day to compensate with sugar (direct and indirectly I love sugar).
    Sorry this is Your blog and the main theme is about Nam power industry. I live in the opposite side of the world if we consider that you are in the middle of the tiny earth, I´m from Portugal. I´ve heard about Nam power market here and what I could say is not much, but I could say that price caps are way to control rocket prices, traditional way. If we could implement some powerline communication or other type of a bi-directional communication, what I call a web power meter, and look at the market the opposite way we use to do, I mean from the client to the generators, creating a second market between retailer and clients, with a strong regulation on both markets, wholesalers and retailers. Well, you could ask how could this avoid the rising of prices from the generators ?
    There are several choices and just to give you a clue we could always know, or it´s always possible to know how much the generators are increasing and where comes from the lion part of the electricity bill (if we have the correct information system)).
    I´ve heard someone said that information does turn on the lights, but it could helps it depends on what,on the how and when to react before the rocket starts the engine price.

    Once again, congratulations to your blog I´ll be back for sure.
    Victor Santos

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