According to Mr. Dang Hoang An, General Director of Electricity of Vietnam (EVN), with the increase in domestic coal prices for electricity production and updating the input parameters such as the prices of imported coal, oil, gas and exchange rates in comparison with parameters used for calculation in plan of the first 9 months of 2016, the total power generation and business costs of EVN will increase about VND 7,230 billion in 2017.
According to Mr. An, in order to carry out the direction of the government, EVN will drastically manage in optimization of power system operation, thorough savings in to minimize power generation and business costs. In particular, EVN will strive to additionally reduce power losses from 7.6% as planed to 7.47%. Up to now EVN has reduced power purchase costs by VND 363 billion.
Mr. An also informed that, EVN was and is implementing the optimal operation of the power system by mobilizing more hydropower generation, less coal fired thermal power generation in comparison with the plan, and no oil power thermal generation, that led to reducing generation costs by VND 2,170 billion.
From the beginning of 2017, EVN assigned plans to its members to save 5% of the costs, equivalent to VND 844 billion and asked them increase savings up to 7.5% of nominal costs that led to the total saving costs of VND 1,266 billion (VND 422 billion higher than the plan of early 2017).
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