EVN leaders face heat for northern Vietnam power shortages

The Commission for the Management of State Capital at Enterprises (CMSC) has proposed reprimanding leaders of state utility Vietnam Electricity (EVN) for power shortages in the northern region this summer.

Inspectors from the Ministry of Industry and Trade in July concluded that EVN had been slow in investing in power generation and transmission grids while the load dispatch was imbalanced, leading to electricity shortages in the 2023 dry season (from late May to mid-June).

The CMSC said it had directed EVN and relevant units to clarify the responsibilities of related units and individuals.

In late August, EVN clarified the responsibilities of its board of members, former board chairperson, general director, and deputy general directors for the power shortages. Its 24 subsidiaries also clarified the responsibilities of 85 units and 161 individuals.

The commission has proposed a reprimand for former chairman Duong Quang Thanh, general director Tran Dinh Nhan, deputy general director Ngo Son Hai, and the director and deputy directors of the National Load Dispatch Center (A0).

From late May to mid-June, the northern region experienced regular power outages as consumption skyrocketed during the hot summer while hydropower, one of the two main sources, posted falling output due to drought. Many factories in northern region's industrial parks suffered power cuts for many hours in several weeks.

The World Bank estimated the economic cost of the May-June power outages at about $1.4 billion, equivalent to 0.3% of Vietnam’s GDP. The supply deficit also led to a $75 million revenue loss to EVN.

Vietnam's northern region suffered an estimated power shortfall of 1,600-4,900 MW in May and June, according to the state utility.

The Ministry of Industry and Trade forecast that if hydropower reservoirs are low, northern Vietnam may lack 1,770 MW in power capacity, about one-tenth of its demand, during the peak dry season next year.