Mr. Ho Sy Hung - Vice Chairman of the State Capital Management Committee at Enterprises - announced the Prime Minister's decision on transferring A0 from EVN to the Ministry of Industry and Trade, approving the policy of establishing a new enterprise, the National Electricity System and Market Operation Company Limited (NSMO).

According to the decision, NSMO Company is a state-owned enterprise, with 100% of the charter capital of VND 776 billion held by the State. This company will continue to act as the national power system dispatching agency, operating electricity market transactions according to the provisions of the Electricity Law and related laws.

The company has a charter capital of 776 billion VND.

The National Electricity System and Market Operation Company Limited will also receive the current status of the National Electricity System Dispatch Center's workforce from EVN. This includes receiving the current status of A0's management apparatus on the basis of arranging A0's leadership and management staff into corresponding leadership positions of NSMO; inheriting all the rights, obligations and legal interests of the Electricity System Dispatch Center that A0 and EVN are implementing related to A0 according to the law, including loans under the signed agreement.

After the transfer, the Ministry of Industry and Trade will be responsible for ensuring the stable, continuous and effective operation of NSMO, and the safety of the power system. Relevant agencies will study and consider, according to their authority, to ensure sufficient charter capital, supplement investment capital, and fulfill loan obligations...

The State Capital Management Committee also announced the decision to establish NSMO Company; the decision to transfer and appoint Mr. Nguyen Duc Cuong - member of the Board of Directors of EVN - as Chairman of NSMO; the decision to assign the authority of NSMO General Director to Mr. Nguyen Duc Ninh - Director of Center A0.

Mr. Dang Hoang An - Chairman of EVN - said that the National Power System Dispatch Center has a history of 30 years of formation and development. The center is responsible for directly operating power plants with a capacity of over 30MW and the transmission system from 110kV - 500kV voltage level, successfully operating the competitive electricity market.

Perfecting NSMO operating mechanisms

Mr. Nguyen Hoang Anh - Chairman of the State Capital Management Committee at Enterprises - said that the separation of A0 and the establishment of a company, transferred to the Ministry of Industry and Trade is not only a change in organizational structure, but also a big step forward and maturity of the Vietnamese electricity industry.

Recognizing the challenges of increasing electricity demand, increasingly stringent energy security requirements, and the global energy transition trend, Mr. Hoang Anh requested the company to continuously improve operational efficiency, apply science and technology, and help ensure energy security...

Meanwhile, Mr. Nguyen Hong Dien - Minister of Industry and Trade - said that ensuring the operation of the national power system plays an important role, ensuring fairness and equity in the operation of the power system and the electricity market. Therefore, the establishment of NSMO and its transfer to the Ministry of Industry and Trade is an objective and inevitable requirement to operate the competitive electricity market and restructure EVN.

In order for the National Power System and Market Operation Company Limited to operate effectively after the transfer and to fulfill its role in ensuring energy security, Mr. Dien requested that NSMO and EVN promptly submit contents related to the operation of the system and the electricity market. Complete documents to ensure that NSMO operates stably and effectively, with the spirit that policies may be better but not worse than before.

Advise on the establishment of a working group related to the operation of the system, the electricity market, approve the dispatch price and operate the electricity market so that NSMO has operating costs; hand over financial assets of the parties, the locality arranges land fund to build the operating headquarters, develops internal regulations and procedures...