Nghe An Power Company: Reducing power losses through effective management.

In the electricity sector, power loss has never been merely a technical indicator. It is a "measure" reflecting the efficiency of the power system's operation, investment efficiency, and the ability to control resources in the process of electricity production and business. Each percentage point reduction in losses not only contributes to cost savings and improved production and business efficiency, but also helps optimize the power grid infrastructure, efficiently utilize energy resources, and enhance the quality of electricity supply to customers.

For Nghe An Power Company, the task of reducing power losses is even more challenging given the large natural area the company manages in the province. With terrain stretching from mountainous and hilly areas to plains and coastal regions; uneven load distribution, many areas have large power supply radii, while electricity demand continues to grow year after year.

In this context, reducing power losses cannot be solved solely through infrastructure investment or isolated technical solutions. The key lies in the operational methods, data analysis capabilities, coordination between units, and the sense of responsibility of each employee throughout the entire system.

Data-driven management, addressing every "bottleneck"

Previously, electricity loss reduction efforts were primarily assessed based on end-of-period results. Now, Nghe An Power Company has strongly shifted to a data-driven management approach, closely monitoring the implementation process and promptly addressing each emerging cause.

Regular online meetings on reducing power losses are held with each power company. Instead of just looking at aggregated figures, company management requires analysis and breakdown of data down to each feeder, transformer, voltage level, and area with high loss rates to accurately identify the causes.

In each unit, every issue is analyzed in detail: Losses arising from the power grid structure, long power supply radius, suboptimal operating methods, or metering systems; which areas require investment in upgrades, and which areas can be addressed immediately with operational solutions; and which items should be prioritized for resources to achieve the highest efficiency.

A highlight of the management work is that the Company's Board of Directors directly assigns responsibilities to each group of subordinate power companies, regularly goes directly to the field to work with the facilities, urges and monitors the progress of implementing solutions, promptly resolves difficulties and demands the complete resolution of outstanding issues affecting the electricity loss target.

This approach helps management go beyond simply setting targets and delve into addressing each "bottleneck," ensuring that each solution is implemented correctly, focusing on the core issues and tailored to the specific operating conditions of each locality. It also represents a shift from results-based management to process-based management, where all changes are monitored, analyzed, and adjusted during implementation.

Synchronize solutions and spread responsibility throughout the entire system.

Effective energy loss reduction is not achieved through a single solution, but rather through a synchronized combination of management, technology, and human resources.

From a technical standpoint, the company regularly reviews wiring methods, optimizes operating diagrams, balances loads between phases, distributes loads appropriately among transformers, adjusts tap settings appropriately, addresses unreliable contact points, and improves the quality of the metering system. Simultaneously, the application of technology in operational monitoring, data analysis, and real-time load tracking is intensified, enabling early detection of anomalies and timely corrective action.

For areas with large power supply radii or where the power grid has shown inadequacies, the company prioritizes investment in upgrading power lines, building new substations, shortening power supply distances, increasing load capacity, and gradually modernizing the power grid to reduce technical losses.

Behind these positive figures lies the synchronized efforts of the entire system, with the goal of reducing power losses being concretized into the responsibility of each officer and employee. Many emulation movements have been launched, directly linked to the target of reducing power losses, creating a vibrant competitive atmosphere throughout the company. Responding to this movement, at the affiliated power plants, many officers and employees voluntarily worked overtime to "factory-ize" meters, replace and standardize metering systems; strengthen the implementation of grid improvement according to the 5S model; balance phases, distribute loads, address faulty contact points, rectify existing problems on power lines and substations, and proactively prepare operating methods before the peak season. From these quiet but persistent efforts, the effectiveness accumulates day by day, contributing to reducing the power loss rate and improving the quality of power grid management and operation.

More importantly, the involvement of all employees has created a shift in awareness: Reducing power losses is no longer solely the responsibility of the technical department, but has become the responsibility of every unit, every position, and every employee. Along with implementing solutions, the company requires power companies to periodically conduct in-depth analysis of loss data at each voltage level, each power line, and each public substation to accurately assess the effectiveness of each solution. Successful models and effective practices are replicated; units with remaining problems are given focused guidance and support to resolve issues at the grassroots level, creating a ripple effect throughout the entire system.

The fruits of persistent efforts.

Thanks to the synchronized implementation of management and technical solutions, and the fostering of a sense of responsibility among the workforce, the company's electricity loss reduction targets continue to show positive improvements.

In June 2026, the electricity loss rate according to the commercial cycle of Nghe An Power Company reached 5.09%, a decrease of 2% compared to the same period last year; the cumulative rate for the first six months of the year reached 5.40%, a decrease of 0.14%. Regarding electricity loss by voltage level, June reached 5.25%; the cumulative rate for the first six months of the year reached 4.75%, a decrease of 0.25% compared to the same period in 2025. These results were achieved amidst high load demand, with many areas of the power grid operating at full capacity due to prolonged hot weather, affirming the effectiveness of technical management solutions, optimized operation, and system management. More importantly, these results show a clear shift in management methods: from experience-based management to data-driven management; from results-based management to process-based management; and from the tasks of one department to the common goals of the entire system.

Mr. Pham Cong Thanh, Director of Nghe An Power Company, stated: "Given the vast geographical area, extensive power grid, and complex operating conditions, reducing power losses has always been a challenging task for Nghe An Power Company. The results achieved so far reflect positive changes and are the fruits of the determination and unity of the entire system, from leadership and management to the sense of responsibility of each officer and employee. However, we recognize that this is only the first step, and much work remains to be done to achieve the set goals. In the future, the company will continue to review and implement more effective solutions, making power loss reduction increasingly substantive and sustainable, contributing to improved operational management efficiency, optimal resource utilization, and enhanced production and business performance."

In the context of continuously increasing electricity demand, increasingly stringent grid operation requirements, and higher production and business efficiency targets, reducing power losses will continue to be a central and overarching task for Nghe An Power Company. With a foundation of scientific management, decisive leadership, and the concerted efforts of all staff and employees, the company is gradually shifting the goal of reducing power losses from a pressure to meet targets into a driving force for improving operational efficiency, contributing to building a safe, reliable, efficient, and sustainable power system.