EVN suggests to add 1500 billion VND to Electricity purchase costs due to increasing coal prices

EVN suggests to add 1500 billion VND to Electricity purchase costs due to increasing coal prices - 

Electricity of Vietnam (EVN) has just sent an official dispatch to the Prime Minister to report on applying the prices for mixed coal as proposed by the Vietnam National Coal and Mineral Industries Group (Vinacomin) and the Northeast Corporation that leads to add 1,498.06 billion VND to electricity purchase costs in 2019, of which from mixed coal of Vinacomin is 1,062.89 billion and from mixed coal of Northeast Corporation - 435.17 billion.

In the official dispatch, EVN shows that the coal demand for electricity generation in 2019 is estimated 25.84 million tons, from which Vinacomin and Northeast Corporation supply 19 million tons of domestic coal and import 6.84 million tons of mixed coal.

Vinacomin and Northeast Corporation will mix domestic with imported coal to make mixed coal with Vietnamese standard TCVN 8910:2018 for thermal power plants of EVN and member units with the higher prices from 188-273 thousand VND/ton, equivalent to 11.18 – 15.06% dependently with the coal types.

Based on the situation of electricity production, coal supply for electricity production in 2019, EVN asked the Prime Minister to consider for allowing EVN and its member units to use mixed coal between imported coal and domestic coal made by Vinacomin and Northeast Corporation with the volume and prices proposed by Vinacomin and Northeast Corporation, and at the same time, to allow EVN and its member units to calculate prices of mixed coal as reasonable and lawful costs in the electricity production and business activities.

EVN also proposed to allow power plants to adjust the electricity prices in the PPAs, participate in the electricity market with the costs of mixed coal and update calculation to include mixed coal prices to the average electricity prices in 2019.

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