The State utility company is buying electricity from Hiep Phuoc at some VND6,000 a kWh to supply Tan Thuan Export Processing Zone, Tan Binh Industrial Park, and Phu My Hung Urban Area at one-fifth that price, said Dinh Quang Tri, EVN deputy director.

“The disparity between power buying and selling prices is making us suffer huge loss each month. EVN may stop buying power from Hiep Phuoc from October 1,” Tri told the Daily on Monday.

Earlier, Hiep Phuoc Power Company handed over all its power grid and facilities to EVN free of charge after it had failed to raise the power price. There were times when Hiep Phuoc Power Company had threatened to disrupt power supply for all enterprises in the above-mentioned zones and the new urban areas, saying it had racked up huge losses.

The problem was later solved for Hiep Phuoc Power Company when EVN was told to take over the power grid and ensure continued power supply.

EVN has increased purchase of power from independent power plants after its gas-fuelled power plants had to stop operating due to the interruption of gas supply from Nam Con Son Pipeline and PM3 Gas Pipeline over the past days.

Meanwhile, speaking with the Daily on Monday afternoon, Pham Hong Tien, manager of the operation office of Hiep Phuoc Company said that EVN resumed buying electricity from the company at an output of 3.8 million kWh per day after a month’s halt. Hiep Phuoc had to mobilize diesel fuel source to generate electricity to supply EVN.

“EVN, however, announces to stop buying power again these days. Its intermittent purchases resulted in our huge losses,” Tien added.

To avoid losses, Hiep Phuoc has asked the Ministry of Industry and Trade for permission to build a new gas-fired power plant with an output of 780MW which will cost around US$600 million in total.

If accepted, the power plant will have an output twice as that of the company’s current one. The power plant is scheduled to be constructed in 2012 at the position of the current power plant and planned to be put into operation from late 2014.

The proposal for the new power plant construction, Tien said, is being forwarded by the Ministry of Industry and Trade to the Prime Minister for consideration.