Workers install electricity meters to supply power to Mong ethnic people in the northern mountainous province of Lai Chau. — VNA/VNS Photo Ngoc Ha

HA NOI (Biz Hub) — As many as 900 communes have yet to hand over their low-voltage grids to the Electricity of Viet Nam (EVN) corporation, even though the deadline for the transfer is the end of this year, Le Van Chuyen, deputy head of EVN's business department said.

At present, local traders in these communes manage and sell electricity to residents. Therefore, rural households pay higher prices than those who buy electricity directly from EVN's companies.

"Local traders do not want to hand over rural low-voltage grids due to increasing profits year by year," Chuyen said.

Electricity prices in rural areas rise by 5 per cent each year as instructed by the Prime Minister; however, the actual value of the increase makes the price gap between electricity sold by local traders and by the EVN larger every year.

The EVN has asked people's committees in these localities to speed up the transfer processes.

The Departments of Industry and Trade in these provinces would be responsible for the transfer of the grids if local traders aren't able to complete the process by the end of this year.

The transfer of rural low-voltage electricity grids to the EVN will benefit local households as they will get better electricity service with lower prices. Households no longer have to pay for additional services, such as electricity meter installations and fees for upgrading local grids.

Lai Dau, a resident from Dien Trung Commune of Quang Nam Province, said that he had enjoyed better service since the rural low-voltage grid transferred to the EVN.

"Prior to the transfer, the local grid managed by the Dien Trung Collective was unstable. We used to suffer power failure, especially from 10 to 12 in the morning and from 5 to 8 in the afternoon. Since the Duy Xuyen Electricity – under the EVN took over the management of the grid, the quality of service has improved considerably," Dau said.

Up to June this year, the EVN has taken over the management of rural low-voltage grids in about 1,150 communes, accounting for 61.8 per cent of the set target for the 2013-15 period. At present, the EVN sell electricity directly to 1.3 million households in rural areas. —VNS