Nghe An: Speeding up the progress of upgrading and restoring the rural power grid

More than 3,000 km of low voltage lines and branches need upgrading

Quynh Thanh (Quynh Luu) is a densely populated locality with about 2,600 electricity meters and 12 transformer stations (of which 8 stations serve household electricity and 4 stations serve shrimp farming). In 2009, Quynh Thanh commune handed over the rural power grid to the electricity sector for management. After the handover, the power grid system was upgraded, ensuring the quality of electricity for the people. However, in the commune, there are still many problems such as degraded and tilted electric poles, low electric wires hanging down to the road, especially some lines still have bare electric wires that have not been replaced with insulated wires, posing a potential safety risk during the rainy and stormy season.

The power grid system in Quynh Thanh commune (Quynh Luu) needs to be upgraded and renovated to ensure safety before the upcoming flood season. Photo: Viet Hung

Mr. Ho Van Hung in Hamlet 10 said that although the Electricity sector has recently paid attention to upgrading the power grid system, in some places, there are still bare wires that have not been replaced with covered wires to ensure safety. People hope that the Electricity sector will continue to pay attention and overcome the problems before the storm occurs.

Mr. Ho Xuan Xuyen - Chairman of Quynh Thanh Commune People's Committee said that after handing over to the Electricity sector for management, the power grid system has been upgraded and improved. However, in reality, about 20% of the power grid system in the commune still does not meet safety conditions for users when the bare wire system still exists in villages and hamlets. In addition, the installation of electricity meter boxes about 40 - 50 cm above the ground is posing a potential risk of electrical accidents, mainly in hamlets 12 and 13. Given the above situation, the commune recommends that the Electricity sector continue to invest in and improve the quality of electricity in the area.

Not only in Quynh Thanh, but also in many areas across the province, the rural low-voltage power grid in some places has degraded, causing unsafety and weak electricity affecting people's lives.

According to data from Nghe An Electricity Company, as of June 2020, the Company is managing 16,583 km of low-voltage lines in the province (including 10,631 km of 0.4kV lines receiving rural areas).

It is a fact that before being taken over by the Electricity Company for management, the power grid was mostly self-invested by the people in a fragmented and non-standard manner, in a state of overload and mostly degraded, while the demand for electricity increased by more than 10% each year.

Nghe An Electricity Company implements the Project to improve energy efficiency in rural areas of Nghe An province in Nghi Loc district. Photo: NPC

To overcome this situation, in recent times, the Electricity sector has focused capital resources to invest in and renovate the power grid. Annually, more than 1,000 billion VND is invested in the distribution grid of Nghe An province, of which the low-voltage grid alone from 2010 to 2019 invested 4,300 billion VND to build nearly 2,000 transformer stations. Every year, Nghe An Electricity Company still uses major repair resources and regular repairs to fix key points for operation, but still does not meet the requirements, so the power grid in some places is still in a state of degradation.

Currently, the whole province still has 3,882 km of low-voltage lines, mainly branches that have not been renovated, concentrated in the districts: Quynh Luu, Nghi Loc, Nghia Dan - Thai Hoa, Dien Chau, Quy Hop, Yen Thanh...

Slow repayment of rural power grid investment costs

In addition to questions about the power grid infrastructure, at recent meetings with voters of the Provincial People's Council, many opinions also recommended early repayment of initial investment costs, after handing over the management of the rural low-voltage power grid to the Electricity sector. In fact, the slow payment of support and compensation to localities after handing over the rural power grid to the Electricity sector is a common situation today. For example, in Quynh Nghia commune (Quynh Luu), in 2017, the power grid was handed over to the Electricity sector for management. Through the inventory of the power grid investment costs before handover, the total amount that the Electricity sector had to pay to compensate the locality was more than 1 billion VND. However, up to now, the commune has not received compensation for the return of the above power grid system.

Mr. To Duy Hien - Chairman of Quynh Nghia Commune People's Committee said that previously, the locality assigned the commune's electricity service cooperative to manage the power grid, each household using the power grid was a member. When it was necessary to invest in upgrading the power grid, all members were responsible for contributing to the construction to gradually improve the quality of electricity. Therefore, the locality also hoped that the Electricity sector would consider, resolve, and pay compensation to the locality and at the same time pay attention to improving the quality of the power grid, serving tourism development in the area.

According to statistics from the Department of Industry and Trade, the handover and receipt of rural low-voltage power grids in Nghe An province was completed by the end of 2019. Nghe An Electricity Company has received the entire rural low-voltage power grid in the province (423/423 communes), with more than 10,631 km of low-voltage lines selling electricity directly to 669,892 households. According to the regulations on capital repayment in Circular 32 of the Ministry of Finance - Industry and Trade, communes that hand over according to the principle of capital increase and decrease are not subject to repayment. In Nghe An, there are 88 communes subject to repayment with a total value of nearly 36 billion VND.

Nghe An Electricity Company upgrades power grid infrastructure in mountainous areas of Ky Son district. Photo: NPC

To be refunded, these communes must prepare refund dossiers according to the instructions specified in the joint circulars of the Ministry of Finance and Industry and Trade. Due to some regulations that are considered "puzzling" such as having to have original documents and receipts during the investment process of building the power grid, before May 2018, the communes could not collect refund dossiers according to the instructions of Circular 06 and Circular 32, so they could not make the refund.

Faced with this situation, Nghe An Power Company has worked with the Northern Power Corporation to agree on a solution and sent documents to the People's Committees of districts, towns and cities and directly to the communes requesting the Company to guide them in preparing the refund dossier. Up to now, Nghe An Power Company has received 59 dossiers (of which 54 have met the requirements, 5 have problems and must continue to work with the Northern Power Corporation to resolve), while 29 property owners do not have dossiers for approval.

According to the guidance of Circular 06 and Circular 32, the property owner must prepare a refund dossier as a basis for approval of implementation. The delay in refunding, in addition to the difficulties caused by cumbersome and complicated regulations and procedures, is partly due to the fact that the property owners have not proactively coordinated with the Electricity Company to prepare a dossier for approval by competent authorities.

Under the direction of the Provincial People's Committee, the districts have established councils for the handover and return of rural low-voltage power grids. The People's Committees of the districts are requested to urge and communes subject to return that have not yet completed their records to Nghe An Power Company for guidance on continued implementation. The Electricity sector should also promptly take measures to remove obstacles in the work of returning capital for rural low-voltage power grids, speed up the progress of capital return to ensure the rights of units that have handed over assets to Nghe An Power Company for management.

Nghe An electricity workers check the safety of the power grid. Photo: Viet Phuong

5 sets of documents are still stuck in the refund of investment costs for the power grid:Nghia Xuan Commune (Nghia Dan), Quynh Thanh (Station 5, Quynh Luu), Mai Hung (Toan Thang Cooperative, Quynh Luu), Hung Loi (Hung Nguyen), Do Thanh (Yen Thanh).

29 property owners have not submitted documents for approval to refund the funds:Dien Chau: Dien Doai Commune, Dien Loi (Quang Phu Cooperative), Dien Truong (Truong Thanh Cooperative, Quyet Thang), Dien Loc, Dien Bich, Dien Dong, Dien Thanh (Mai Thanh Cooperative); Yen Thanh: Dong Thanh, Phu Thanh, Lang Thanh; Nghia Dan: Nghia Lac, Nghia Loi, Nghia Hung; Hung Nguyen: Hung Chinh, Hung Xuan, Hung Long (RE2MR), Hung Tien, Hung Xa; Nghi Loc: Nghi Khanh, Nghi Thach, Phuc Tho, Nghi Kieu, Nghi Lam; Quynh Luu: Quynh Giang (Sub-district 1+2), Quynh Thach, Quynh Phuong, Tien Thuy, Quynh Lap, Son Hai (Sub-district 1,2,3,4,5).