Talking to Lao Dong Newspaper, Dr. Nguyen Xuan Quang - Institute of Energy Technology, Hanoi University of Science and Technology (photo) assessed that this policy cannot be implemented "overnight" due to many technical barriers and policy mechanisms.
- If considered from a technical, technological and operating principle perspective of the power system, electricity prices reflecting the correct cost of electricity supply at each time will help users adjust their consumption behavior. From there, it contributes to more efficient electricity use, reducing pressure on the power system during peak hours.
However, to implement the TOU electricity price mechanism for millions of households, it is not only replacing meters but also building an intelligent measuring technical infrastructure. A complete TOU system requires measuring equipment at each household to be an AMI smart electronic meter, capable of accurately recording and storing electricity consumption accordingly, and at the same time directly connecting to the MDMS system (measuring data management) processing millions of hourly records that are not yet ready at the national level.
Currently, most Vietnamese households are using traditional meter systems or old-generation electronic meters that do not integrate real-time multi-table measurement features. The simultaneous replacement of tens of millions of these measuring devices requires huge investment capital. Technical complexity is multiplied when considering the dispersion and consumption scale of residential customers.
Sir, we are applying a tiered retail electricity price schedule for domestic use. So if in the future we apply an additional electricity price mechanism based on usage time for domestic customers, will it be overlapping?
- Any policy is aimed at supporting people, especially those with low incomes. It is necessary to establish a parallel integrated price mechanism, harmoniously combining the progressive price schedule and the time-based price schedule.
Electricity tariffs can be implemented in 2 layers:
Grade 1 - Staggered progression (unchanged): Applied to all people, protecting poor households, without changing the current calculation method. This group of subjects will not be pressured by peak and off-peak hours, maintaining stability in daily life, ensuring stability and protecting the social security rights of households, poor households and low-income households.
Grade 2 - When electricity consumption exceeds the consumption of step 6, which is over 400kWh, surcharges exceed the peak threshold are calculated, accordingly, peak hour electricity prices are activated when peak hour consumption exceeds the threshold of 100 kWh/month. Applicable to households with AMI smart meters. With existing data, EVN can filter out suitable households to install this meter. This is a group of customers with a large amount of electrical equipment, with a high contribution to the peak system load and with sufficient financial capacity as well as technical capacity to adjust consumption behavior. This group of customers also has conditions and motivation in proactive load transfer technologies with many new, modern techniques and needs investment costs such as storage batteries, storage devices or also helps them avoid meaningless electricity consumption during peak hours. When they can shift electricity use from peak hours to off-peak hours, they will save costs.
What recommendations do you have for the Ministry of Industry and Trade when developing peak hour electricity price policies for households using domestic electricity?
- Technically, the Ministry of Industry and Trade needs a clear roadmap. If this mechanism is implemented, it will certainly have to equip AMI smart electricity meters and MDMS data analysis and management system capable of tracking usage time for many subjects. However, before investing simultaneously, it is necessary to classify customer groups to select suitable installation subjects.
In particular, it is necessary to carefully consider the impact of policies on vulnerable groups and low-income people. These are groups that are almost unable to invest in electricity storage equipment, energy management systems or smart electrical equipment to shift loads. Therefore, if the hourly electricity price mechanism is applied simultaneously, it is very easy to increase the burden of living costs for these subjects.
- Thank you very much, sir!
