The Prime Minister has just issued Decision No. 752/QD-TTg on separating the National Power System Dispatch Center (A0) from Vietnam Electricity Group (EVN) and establishing the National Power System and Electricity Market Operation Company Limited under the State Capital Management Committee at Enterprises.

Accordingly, A0 was separated from EVN and the policy of establishing a new enterprise under the State Capital Management Committee at the enterprise was approved, called the National Electricity System and Market Operation Company Limited (NSMO).

NSMO is a state-owned enterprise in which the State holds 100% of the charter capital, organized in the form of a single-member limited liability company (LLC) with the State Capital Management Committee at Enterprises as the representative agency of the owner. Head office address is at 11 Cua Bac Street, Truc Bach Ward, Ba Dinh District, Hanoi City.

The deadline for separating A0 from EVN is within a maximum of 7 days from August 1, 2024.

NSMO will perform the task of being the national power system dispatching unit, operating electricity market transactions according to the provisions of the Electricity Law and related laws, including the following tasks:

Establish a method of commanding and operating the national power system with the goal of safety, stability, reliability, and operating electricity market transactions to ensure fairness and transparency; contributing to ensuring the goal of providing safe, stable, and continuous electricity for economic, political, social, security, and national defense activities.

Investing, managing, operating, maintaining and servicing specialized information technology telecommunications system infrastructure serving power system operations, conducting electricity market transactions and renewable energy.

NSMO ensures sustainable and effective operations; optimizes costs, manages and uses state capital and assets invested at NSMO effectively and in accordance with regulations; other tasks as prescribed by law.

The charter capital of NSMO at the time of establishment was VND 776,000,000,000. The additional charter capital and the source of additional charter capital for NSMO during its operation will be determined by the owner's representative agency based on the provisions of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises and other relevant legal provisions, based on reviewing the actual progress of NSMO's investment projects.

NSMO receives the current status of A0's workforce from EVN at the time this decision takes effect, including receiving the current status of A0's management apparatus (continuing to arrange A0's leadership and management staff into corresponding leadership positions of NSMO).

Regarding the method, the assets, rights and obligations of EVN that are currently being managed and implemented by A0 will be separated and transferred to NSMO according to regulations. At the same time, the value of assets and capital currently being transferred to A0 belonging to EVN will be transferred to NSMO according to the data in EVN's financial statements at the time of separation. EVN will record the reduction of EVN's capital and assets corresponding to the value transferred to NSMO according to regulations of law.

NSMO inherits all rights, obligations and legitimate interests of A0 that A0 and EVN are performing related to A0 according to the provisions of law.

For the two loans under Loan Agreement No. 4107-VN (New National Power System Dispatch Center project) and Loan Agreement No. 4711-VN (Information infrastructure project for competitive power generation market), EVN continues to be responsible for repaying the loan to the authorized re-lending agency according to the provisions of the re-lending contract signed with the authorized re-lending agency and the sub-loan agreement signed with the Ministry of Finance.

NSMO is responsible for repaying to EVN the debt repayment to the authorized re-lending agency.

The authorized re-lending agency, EVN, and NSMO sign an appendix to the mortgage contract for the assets mortgaged to the authorized re-lending agency.

The Ministry of Finance coordinates with the authorized re-lending agency, EVN, NSMO in the work of recovering re-loaned debt from the authorized re-lending agency, EVN, NSMO.

NSMO officially belongs to the Ministry of Industry and Trade

Also on August 1, 2024, the Prime Minister issued Decision No. 753/QD-TTg approving the policy of transferring the right to represent the ownership of state capital at the National Electricity System and Electricity Market Operation Company Limited from the State Capital Management Committee at Enterprises to the Ministry of Industry and Trade.

The transfer will be carried out after the separation and establishment of NSMO is completed in accordance with the law and Decision No. 752/QD-TTg dated August 1, 2024 of the Prime Minister.

The State Capital Management Committee at Enterprises and the Ministry of Industry and Trade are responsible for the content of the report and proposal; decide and implement the transfer of the right to represent the State capital ownership at NSMO from the Committee to the Ministry of Industry and Trade in accordance with the provisions of law immediately after completing the separation and establishment according to Decision No. 752/QD-TTg.

The Ministry of Industry and Trade is primarily responsible for preparing all necessary conditions to receive the NSMO, including a mechanism to ensure working capital for the NSMO in accordance with legal regulations, ensuring that the NSMO continues to operate stably, continuously and effectively after the transfer. Preside over and coordinate with relevant ministries and branches to issue, within their authority, or submit to competent authorities for issuance, legal documents serving the operation of the NSMO, ensuring that the NSMO operates stably, continuously and effectively.