Nghe An: Accelerating the upgrading and restoration of rural power grids.

Over 3,000 km of low-voltage power lines and branch lines need upgrading.

Quynh Thanh commune (Quynh Luu district) is a densely populated area with approximately 2,600 electricity meters and 12 transformer stations (8 serving residential electricity and 4 serving shrimp farming). In 2009, Quynh Thanh commune handed over its rural electricity grid to the electricity sector for management. After the handover, the grid system was upgraded, and the quality of electricity serving the people was ensured. However, many problems still exist in the commune, such as dilapidated and leaning power poles, low-hanging power lines, and especially some routes still have bare power lines 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 district) needs to be upgraded and renovated to ensure safety before the upcoming rainy season. Photo: Viet Hung

Mr. Ho Van Hung from Hamlet 10 said that although the Electricity sector has paid attention to upgrading the power grid system in recent times, in some places there are still bare wires that have not been replaced with insulated wires to ensure safety. The people hope that the Electricity sector will continue to pay attention to and address these issues before the storms occur.

Mr. Ho Xuan Xuyen, Chairman of the People's Committee of Quynh Thanh commune, said that after being handed 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, as exposed wires still exist in villages and hamlets. In addition, the installation of electricity meter boxes about 40-50 cm above the ground poses a potential risk of electrical accidents, mainly in hamlets 12 and 13. Given this situation, the commune requests the Electricity sector to continue investing in and improving the quality of electricity in the area.

Not only in Quynh Thanh, but in many areas throughout the province, the rural low-voltage power grid has deteriorated in some places, causing safety hazards and weak electricity supply, affecting the daily lives of the people.

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

The reality is that before being taken over by the Electricity Company, the power grid was largely self-invested by individuals, resulting in a fragmented and unstandardized system that was overloaded and largely dilapidated, while electricity demand increased by more than 10% annually.

Nghe An Power Company is implementing the project to improve energy efficiency in rural areas of Nghe An province, specifically in Nghi Loc district. Photo: NPC

To address this situation, the power sector has focused its capital on investing in and upgrading the power grid. Annually, over 1,000 billion VND is invested in the distribution grid of Nghe An province, with 4,300 billion VND invested in the low-voltage grid between 2010 and 2019, constructing nearly 2,000 transformer substations. Every year, Nghe An Power Company still uses resources for major repairs and routine maintenance to address critical points for operation, but this is still insufficient, resulting in the continued deterioration of the power grid in some areas.

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

Delayed repayment of investment costs for rural power grids.

Besides concerns about power grid infrastructure, during recent meetings with constituents by the Provincial People's Council, many opinions also suggested the prompt reimbursement of initial investment costs after the handover of rural low-voltage power grid management to the Electricity sector. In reality, the slow payment of compensation and support to localities after the handover of rural power grids to the Electricity sector is a common problem. For example, in Quynh Nghia commune (Quynh Luu district), the power grid was handed over to the Electricity sector for management in 2017. An inventory of investment costs before the handover revealed that the Electricity sector had to pay over 1 billion VND in compensation to the locality. However, to date, the commune has not yet received the compensation for the power grid system.

Mr. To Duy Hien, Chairman of the People's Committee of Quynh Nghia commune, said that previously, the locality assigned the commune's electricity service cooperative to manage the power grid, with each household using the electricity being a member. When investment in grid improvement was needed, all members were responsible for contributing to the construction to gradually improve the quality of electricity. Therefore, the locality also hopes that the Electricity sector will consider and resolve the issue, pay compensation to the locality, and at the same time pay attention to improving the quality of the power grid to serve tourism development in the area.

According to statistics from the Department of Industry and Trade, the handover and acceptance of rural low-voltage power grids in Nghe An province was completed by the end of 2019. Nghe An Power Company has taken over the entire rural low-voltage power grid in the province (423/423 communes), with over 10,631 km of low-voltage lines directly supplying electricity to 669,892 households. According to the regulations on capital repayment in Circular 32 of the Joint Ministry of Finance and Industry and Trade, communes that transferred capital based on increases or decreases are not subject to repayment. In Nghe An, 88 communes are subject to repayment with a total value of nearly 36 billion VND.

Nghe An Power Company upgrades power grid infrastructure in the mountainous area of ​​Ky Son district. Photo: NPC

To receive reimbursement, these communes had to prepare reimbursement dossiers according to the guidelines stipulated in the joint circulars of the Ministry of Finance and the Ministry of Industry and Trade. Due to some regulations considered "tricky," such as the requirement for original documents and receipts from the investment and construction of the power grid, before May 2018, the communes were unable to compile reimbursement dossiers according to the guidelines of Circular 06 and Circular 32, and therefore could not process the reimbursement.

Faced with this situation, Nghe An Power Company worked with the Northern Power Corporation to agree on a solution and simultaneously sent documents to the People's Committees of districts, towns, and cities, as well as directly to communes, requesting them to contact the company for guidance on preparing reimbursement documents. To date, Nghe An Power Company has received 59 sets of documents (of which 54 meet the requirements, and 5 have issues that require further work with the Northern Power Corporation to resolve), while 29 property owners have yet to submit their documents for approval.

According to Circular 06 and Circular 32, property owners must prepare reimbursement documents as a basis for approval. The delay in reimbursement, besides difficulties caused by cumbersome and complex regulations and procedures, is partly due to property owners not proactively coordinating with the Electricity Company to prepare and submit the necessary documents for approval to the competent authorities.

Following the direction of the Provincial People's Committee, councils for the handover and return of rural low-voltage power grids have been established in the districts. The People's Committees of the districts are requested to urge the communes subject to the return process that have not yet submitted the necessary documents to contact Nghe An Power Company for guidance on further implementation. The power sector should also promptly take measures to resolve obstacles in the return of capital for rural low-voltage power grids, accelerating the progress of capital return to ensure the rights of the units that have handed over assets to Nghe An Power Company for management.

Electricity workers in Nghe An province inspect the safety of the power grid. Photo: Viet Phuong

Five sets of documents are still pending in the reimbursement process for power grid investment costs:Nghia Xuan commune (Nghia Dan district), Quynh Thanh commune (Station 5, Quynh Luu district), Mai Hung commune (Toan Thang Cooperative, Quynh Luu district), Hung Loi commune (Hung Nguyen district), Do Thanh commune (Yen Thanh district).

29 property owners have not yet submitted the necessary documents for reimbursement:Dien Chau: Dien Doai Commune, Dien Loi Commune (Quang Phu Cooperative), Dien Truong Commune (Truong Thanh, Quyet Thang Cooperatives), Dien Loc Commune, Dien Bich Commune, Dien Dong Commune, Dien Thanh Commune (Mai Thanh Cooperative); Yen Thanh District: Dong Thanh Commune, Phu Thanh Commune, Lang Thanh Commune; Nghia Dan District: Nghia Lac Commune, Nghia Loi Commune, Nghia Hung Commune; Hung Nguyen District: Hung Chinh Commune, Hung Xuan Commune, Hung Long Commune (RE2MR), Hung Tien Commune, Hung Xa Commune; Nghi Loc District: Nghi Khanh Commune, Nghi Thach Commune, Phuc Tho Commune, Nghi Kieu Commune, Nghi Lam Commune; Quynh Luu District: Quynh Giang Commune (Substation No. 1+2), Quynh Thach Commune, Quynh Phuong Commune, Tien Thuy Commune, Quynh Lap Commune, Son Hai Commune (Substation No. 1, 2, 3, 4, 5).