Ceremony of transferring the National Power System Control Center to the Ministry of Industry and Trade

Attending the handover ceremony, on the side of the Ministry of Industry and Trade, there were comrade Nguyen Hong Dien - Member of the Party Central Committee, Minister of Industry and Trade, leaders of departments and offices under the Ministry.

On the side of the State Capital Management Committee at Enterprises, there were comrade Nguyen Hoang Anh - Member of the Party Central Committee, Chairman of the Committee; Vice Chairmen of the Committee: Ho Sy Hung, Nguyen Canh Toan; leaders of departments and units under the Committee.

On EVN’s side, there were comrade Dang Hoang An – Party Secretary, Chairman of EVN’s Board of Directors; comrade Nguyen Anh Tuan – Deputy Party Secretary, General Director of EVN; comrade Nguyen Huu Tuan – Standing Deputy Secretary of EVN’s Party Committee; comrades members of the Board of Directors, Deputy General Directors, Chairman of Vietnam Electricity Trade Union; leaders of EVN’s member units…

On the side of the National Electricity System and Market Operation Company Limited (NSMO), there were Chairman of the Board of Directors Nguyen Duc Cuong, Acting General Director Nguyen Duc Ninh; and leaders of units under NSMO.

A big step forward, affirming the development and maturity of Vietnam's electricity industry in the new era.

At the ceremony, EVN Deputy General Director Nguyen Xuan Nam reported on the process of developing and implementing the Project to separate A0 into a single-member limited liability company under the State Capital Management Committee at enterprises and transfer it to the Ministry of Industry and Trade. Accordingly, thoroughly implementing the Prime Minister's direction on transferring the National Power System Dispatch Center to the Ministry of Industry and Trade, EVN has been determined, urgent, and closely participating with the State Capital Management Committee, the Ministry of Industry and Trade and relevant ministries and branches in the process of developing and submitting the Project for approval. At the same time, EVN has also carried out relevant preparations to implement as soon as the Prime Minister approves the A0 separation project. Implementing Decisions No. 752 and 753 of the Prime Minister, NSMO has been established and completed the business registration procedures, the State Capital Management Committee, the Ministry of Industry and Trade and EVN have completed the procedures to organize the ceremony to transfer A0 from EVN, the State Capital Management Committee to the Ministry of Industry and Trade.

Also at the ceremony, Mr. Dang Hoang An - Chairman of the Board of Directors of EVN said that A0 is a unit under EVN, with a history of 30 years of formation and development, with the task of directly operating power plants with a capacity of over 30 MW and transmission systems from 110kV to 500kV voltage levels. In 2007, A0 assumed the task of operating the EVN internal electricity market. Since July 1, 2012, the Center has successfully operated the competitive electricity market in Vietnam.

Throughout its development journey, A0 has successfully completed its assigned tasks, making an important contribution to Vietnam Electricity Group's task of ensuring stable and safe electricity supply for socio-economic development and people's lives.

According to Mr. Dang Hoang An, today's ceremony marks an important milestone in the restructuring and development process of A0, and is also a turning point for EVN's operations as well as the reform and development process of Vietnam's electricity industry.

“The separation of A0 into NSMO and its transfer to the Ministry of Industry and Trade not only demonstrates the Government and Prime Minister’s close attention and direction to the electricity industry, but is also an inevitable process in line with the Party and State’s policies, ” Mr. Dang Hoang An emphasized, adding that EVN is committed to coordinating and supporting NSMO to absolutely ensure safe, stable and reliable operation of the electricity system; at the same time, continuing to research and make recommendations to competent authorities to implement feasible solutions, in accordance with the law, to support NSMO to operate stably and continuously after its establishment.

On the side of the National Electricity Management Board, Mr. Nguyen Hoang Anh - Chairman of the Board - also affirmed that the separation of A0 and the establishment of NSMO under the National Electricity Management Board and the transfer to the Ministry of Industry and Trade is not only a change in organizational structure but also a big step forward, affirming the development and maturity of the Vietnamese electricity industry in the new period.

As the agency receiving A0 (now NSMO), speaking at the ceremony, Minister Nguyen Hong Dien said that the regulation and operation of the national electricity system and market in a safe, stable and reliable manner is a very important task, under the authority of the State Management Agency to ensure objectivity, impartiality and fairness among the affected subjects.

Therefore, the Government and the Prime Minister have decided to separate A0 from EVN and establish the National Electricity System and Market Operation Company (NSMO) with 100% state capital to operate independently from EVN; at the same time, transfer the right to represent state capital ownership at NSMO from the State Capital Management Committee to the Ministry of Industry and Trade for management, because the Ministry of Industry and Trade has a full apparatus and specialized human resources to effectively implement this field.

“ This is also an objective and inevitable requirement of the process of operating the national power system and the competitive electricity market according to the market mechanism as directed by the Prime Minister in Project No. 168/2017 on restructuring EVN, ensuring energy security, serving socio-economic development and people's lives ” - Minister Nguyen Hong Dien emphasized.

Ensure that NSMO continues to operate stably, continuously and effectively after the transfer.

Implementing the Government's policy, recently, the competent agencies of the Ministry of Industry and Trade, the State Treasury, the Ministry of Planning and Investment and relevant ministries and branches have made efforts to research and advise the Prime Minister to issue Decision No. 752 and Decision No. 753, dated August 1, 2024, and at the same time amend, supplement and issue a number of other relevant legal documents to operate this mechanism.

According to Minister Nguyen Hong Dien, although the National Power System Control Center A0 (now NSMO) has been separated from EVN, both are state-owned enterprises, assigned by the Government to ensure national electricity security under the state management of the Ministry of Industry and Trade and the National Power Management Board.

Therefore, to ensure that NSMO continues to operate stably, continuously and effectively after the transfer, the Commander of the Industry and Trade sector requests EVN, NSMO One Member Co., Ltd. and functional units of the Ministry of Industry and Trade, and the National Power Transmission Management Board to focus on effectively implementing the following contents:

The first, in transition:

In the immediate future, NSMO is required to urgently coordinate closely with EVN to complete the draft Regulation on coordination of activities and operations between the two parties according to the new model; submit it to the Ministry of Industry and Trade and the National Power Management Board before August 15, 2024 for consideration, approval and implementation to ensure safe, continuous, stable and reliable operation and supply of electricity, well serving the electricity demand for socio-economic development and people's lives.

For functional units of the Ministry of Industry and Trade, according to their assigned functions and tasks, urgently research and advise the Ministry's leaders to decide to amend, supplement and issue new ones or submit to competent authorities to issue necessary legal documents, policies and mechanisms to serve the operation of NSMO, ensuring that NSMO operates stably, continuously and effectively with the general spirit that all activities and policies, means and conditions in the initial stage may not be better, but cannot be worse than when A0 was still under EVN.

Specifically, the Minister assigned the Electricity Regulatory Authority to directly and comprehensively supervise the operations of NSMO, to prevent risks and incidents due to subjective factors in the operation of the national power system; to advise on the establishment of a Working Group of the Ministry of Industry and Trade related to the operation of the national power system and electricity market; to approve the power system dispatch price and the electricity market transaction operating price in 2024 according to the principle of ensuring that NSMO has reasonable profits and recovers reasonable and valid costs in accordance with the provisions of law.

The Department of Planning and Finance shall act as the focal point for advising and monitoring the implementation of the mechanism for supplementing charter capital and the mechanism for ensuring working capital for NSMOs according to State regulations; proactively coordinate with agencies under the Committee and EVN in handing over finance and assets to the parties; coordinate with relevant localities to arrange land funds for the construction of NSMO headquarters and Power System Control Centers in regions according to the Government's direction.

The Minister also assigned the Department of Personnel Organization to urgently develop and submit to the Ministry's leaders for approval the Charter on organization and operation of NSMO; advise on adjusting the functions and tasks of units within the Ministry of Industry and Trade in accordance with the transfer of NSMO to the Ministry; advise on arranging the organizational structure and personnel according to decentralization; develop internal regulations and internal coordination procedures between relevant units of the Ministry and NSMO.

At the same time, assign the Legal Department to coordinate with the Electricity and Renewable Energy Authority and the Electricity Regulatory Authority to proactively coordinate and guide EVN to review regulations related to the rights and obligations of the parties in relevant international commitments (if any), in BOT contracts and power purchase contracts for BOT power plants to promptly resolve according to authority or advise and report to competent authorities for consideration and appropriate solutions, to avoid arising problems, complaints, lawsuits, legal disputes (especially issues related to the Government)... At the same time, continue to review, study and advise on other legal documents related to the functions, tasks and powers of NSMO, ensuring consistency, feasibility, creating conditions for NSMO to operate stably, continuously and effectively after its establishment.

Signing ceremony of the handover minutes between the State Capital Management Committee at Enterprises and the Ministry of Industry and Trade

The Minister also requested the VNMN Committee to direct the functional units of the Committee to continue to closely coordinate with relevant functional units of the Ministry of Industry and Trade to urge and direct EVN in handing over, continuing to support, ensuring the necessary conditions for NSMO to operate normally and stably until there are sufficient conditions, legal mechanisms and specific guidelines to perform its tasks as prescribed in Decision 752 of the Prime Minister. Especially regarding the infrastructure serving the dispatch and operation work to ensure immediate power supply for the period 2025-2026 when the 500 kV line 3 from Quang Trach (Quang Binh) to Pho Noi (Hung Yen) is put into operation in September 2024 with the requirement of increasing transmission capacity, ensuring system stability and safety.

In addition, the Minister requested EVN to continue to complete the ongoing projects before handing over to NSMO according to the provisions of law. Continue to promote the leading role and coordinate effectively in ensuring electricity supply for the national power system; at the same time, closely and comprehensively coordinate with NSMO in operating the power system and the electricity market, ensuring stability and efficiency.

Second, in the long term:

The Minister requested the Drafting Committee and the Editorial Team of the Electricity Law (amended) to urgently study and absorb the opinions of ministries, branches and localities on the contents related to the conditions and operating mechanisms of EVN and NSMO, as well as other related issues to update and supplement the Draft Amendment to the Electricity Law, and submit it to the National Assembly for promulgation at the end of 2024 session.

For NSMO One Member Co., Ltd. - after having all the conditions and legal mechanisms for production activities, the Company needs to proactively advise, propose operating models and specific, feasible solutions to remove difficulties and problems (if any), ensure the safe, stable, reliable operation of the national power system and operate the electricity market fairly, impartially, transparently, contributing together with EVN and related units to ensure electricity supply for the needs of socio-economic development of the country and serving people's lives.

For relevant Ministries and branches, the Minister requested that they pay attention to directing and organizing the implementation of assigned tasks in Decisions No. 752 and No. 753 dated August 1, 2024 of the Prime Minister, especially the contents on supplementing charter capital, investing in facilities, mechanisms to ensure working capital for NSMO during operation and issues on wages, policies and regimes for employees of the Company; at the same time, closely coordinate with the Ministry of Industry and Trade in directing and managing NSMO's operations to ensure strictness, efficiency and compliance with regulations.

“On this occasion, the Party Executive Committee and the leaders of the Ministry of Industry and Trade would like to sincerely thank the National Power Transmission Corporation and EVN for their wholehearted support and assistance to A0 over the past 30 years. We would like to thank the Government, the Prime Minister, the Deputy Prime Minister, the leaders of ministries, branches, central and local agencies for always paying attention, leading, directing and coordinating, and helping the industry and trade sector in implementing the tasks assigned by the Party and the State. The Ministry of Industry and Trade hopes to continue to receive more attention and assistance from the National Power Transmission Corporation, agencies, units and individual leaders for the industry and trade sector in general and NSMO in particular (especially in the early stages of establishment, transfer and independent operation), creating conditions for the industry and trade sector to continue to successfully complete the assigned tasks ” - Minister Nguyen Hong Dien once again emphasized.

Chairman of the National Defense Management Board Nguyen Hoang Anh presented the Decisions on establishment and personnel appointment to the leaders of NSMO.

Signing ceremony of handover minutes between EVN and NSMO