1 million compact lights save 45.9 million kWh a year
After EVN’s completion of Promotion Program on 1 million compact light use (within 18 months), the International Institute for Energy Conservation (IIEC) has surveyed customers’ compact light use and assessed that the project has been fruitful. Thanks to the policy to subsidize prices and widely disseminate benefits of using compact lights, nearly 1 million good-quality compact lights were supplied for 491,453 households in 3006 communes and towns throughout 64 cities and provinces.
Thus, it helped to raise people’s awareness and actions following the Government’s electricity saving policy, and create households’ habits to use high-productivity and beneficial lights. Besides, the project helped EVN save 45.9 million kWh annually, or 3.1 hours a day, attributing to a cut in additional charge of electricity system in rush hours (30.1 MW) in dry seasons of 2005-2008 period and the following years, and also enabling local producers to expand their markets and increase the output of electricity-saving lights from 3 million in 2005 to 10.5 million in 2006.
5 million compact lights save 200 million kWh a year
EVN has designed a Promotion Project on compact light use in 2007-2010 period aiming at developing practical results of the project to diffuse 1 million compact light use, saving electricity, solving power shortage problem, and presenting its key role to boost the use of electricity-saving lights in Vietnam.
In the scheme, EVN will develop a distribution channel namely “Power Compact” from urban to rural areas. Power plants serve as distributors for compact lights. There will be up to 500 branches and 2000-3000 local agents developed by power plants. And they will facilitate a booth to sell compact lights and other electricity saving lightning products at every place of electricity tariff collecting and customers contacting.
EVN allows companies to actively coordinate and negotiate their deals with suppliers by 2 modules.
Module 1: Power plants buy compact lights from suppliers at wholesale prices, and sell retail through the agent network following EVN’s policy. Subsequently, spending money on buying lights, EVN has the right to set up price policy to sell lights to customers. According to this, EVN buy lights directly without tenders from existing suppliers in Vietnam’s market such as Rang Dong, Dien Quang, Philips, OSTRAM, etc.
Those lights have the most common capacity of 10-20W, with average age of 4000-6000 hours guaranteed in 6 or 12 months. Prices will be negotiated by EVN and suppliers, 20-25% cheaper than retail prices depending on types of lights.
Power plants directly negotiate and sign sales contracts on the basis of the agreement between EVN and suppliers, which should be suitable with their conditions. Those companies will be in charge of organizing and managing sales activities, spending revenue of previous deals on the next ones and preserving the seed capital financed by EVN as reinvested capital resource in order to retain compact light trading.
Module 2: Power plants receive consigned compact lights from suppliers, and sell retail through EVN’s retail outlets following suppliers’ policies then gain commission. According to this, companies will sign agency contracts with suppliers. Suppliers deliver goods to EVN’s companies or other agreed places. They will periodically receive inventory items, false items (guaranteed) and change new items. Retailers enjoy discounts as agreed with suppliers.
As planned, EVN’s agent network will sell 5 million compact lights, become producers’ companions and reach an average consumption of 15-20 million lights a year. Once 5 million compact light program is carried out and successfully completed, can EVN save 200 million kWh a year (or 600 million kWh for 3 year of light’s expectancy), and EVN does not have to construct 131MW power plant within 3 years, then reduces business loss by 185 billion VND. The program’s total profit can reach 625 billion VND. Through this program, EVN provides power plants with new business opportunities: Trading electric equipments including electricity-saving lights.
1 million compact light program
- Price: 25,000 VND per unit at 1st stage, 22,000VND per unit at 2nd stage (approximately 50% of market price)
- World Bank (WB), the sponsor of this program, has allowed EVN to use the revenue from selling lights for TKD project which is being designed.
EVN has financed Rang Dong Light and Vacuum Flask Joint Stock Company 1.7 billion VND to disseminate and promote electricity-saving lights, print dissemination information and EVN’s logo on Rang Dong’s light covers, put dissemination boards at selling and public contacting places of EVN’s branches.
Expectedly, at the end of 2007, power plants will buy the first 500,000 compact lights at an estimated price of 12.5 billion VND, meaning 25,000 VND per unit (including VAT).
EVN’s selling policy
- non-profit in line with subsidized price
- To compensate retailers’ costs at an average of 4500-6000VND per unit.
- To invest 25 billion VND to buy 1 million lights at 1st stage and 16-19 billion VND to facilitate agents.
- EVN gives annual bonuses of 10% of total revenue from selling lights for agents.
- To consider accounting those investment costs on costs of power production and business of EVN.
Outstanding business data of September
Figures dated back from May 2007
Power output for the national economy 22.25 billion kWh
Including:
+ Industry and Construction
+ People’s Management and Consumption
49.6%
40.9%
Direct customers 9,739,911
Electricity for rural areas
Figures dated back from December 2006
Suburban districts with national power network 529/540 (98%)
Communes with national power network 8735/8928 (97.84%)
Households with national power network 17,541,961/18,850,208 (93.06%)
Communes with electricity tariffs lower than 700 VND per kWh 8638/8735 (98.9%)
Communes with electricity tariffs higher than 700 VND per kWh 97/8735 (1.1%)