Stable electricity prices when the competitive power generation market is stopped indefinitely?
Since October 2017,The Ministry of Industry and Trade issued Decision 3698 on the indefinite suspension of the competitive electricity market. This affects hydropower and thermal power plants, but in return, gas-fired power plants benefit from this decision.
 |
| The Ministry of Industry and Trade has issued a decision to temporarily suspend the competitive electricity market starting from October 1, 2017. |
After nearly 5 years of operation (in 2012), the competitive electricity market was temporarily suspended to maximize the output of gas-fired power plants. Meanwhile, at the end of July, the policy for the competitive electricity market was still implemented according to the roadmap to officially come into operation by 2019.
With this decision, hydropower and thermal power plants are affected first because the supply from these plants is cheaper than other sources. However, with the policy of focusing on maximizing gas-fired electricity output, the output of hydropower and thermal power sources will of course decrease due to output loss and gas-fired electricity output in the fourth quarter of 2017 will increase sharply to compensate for the supply from hydropower and thermal power.
 |
| According to a statement from the Ministry of Industry and Trade, this decision does not affect retail electricity prices for consumers. |
Although Decision 3698 does not change the total electricity output of the entire market, it is clear that with the electricity price being higher than the price from the old supply, the possibility of affecting the market price is entirely possible. However, according to the announcement from the Ministry of Industry and Trade, this decision does not affect the retail price of electricity for consumers.
After 5 years of trial operation, the competitive power generation market has 76 plants with a total capacity of nearly 21,000 MW, an increase of nearly 2.5 times compared to when it first started operating in 2012.
According to Labor Newspaper
