Under the plan, NLDC will no longer be put under the management of EVN. It will become a 100 percent state-owned National Power System and Market Operation (NSMO) company that provides services of regulating electricity supply and managing electricity transactions in the power market. NSMO will be under the management of SCMC before it is transferred to the Ministry of Industry and Trade (MOIT).

NSMO collects fees for electricity supply service and power market transaction management, and gets profits from EVN under a service providing contract. The method of calculating service costs will be shown by MOIT.

NSMO is expected to have charter capital of VND776 billion after it leaves EVN, including VND630 billion worth of stockholder equity (as of the end of June 2023), and VND146 billion in IT infrastructure investment projects serving a competitive electricity generation market. But this has not been finalized and is being invested in 2023.

SCMC said that the capital will ensure the stable operation of NLDC after the split, and won’t affected unfinished investment projects in 2023.

Regarding a financial settlement plan, EVN is providing loans to NLDC via two loans under a lending agreement of the World Bank, including $1.56 million for a new electricity regulatory center, and $1.35 million for IT infrastructure development for the competitive electricity generation market.

Experts point out that the loans don’t bear risks and the assets formed from the loans are being mortgaged at re-lending agencies authorized by the Ministry of Finance (MOF). Therefore, under the regulation on public debt management, EVN has the right to transfer the debt obligations to NLDC with the PM’s approval.

SCMC has also proposed that the PM approve the transfer of these two loans from EVN to NSMO after the establishment. This company will directly sign re-lending contracts and asset mortgage contracts, and repay debts to re-lending agencies.

According to SCMC, NLDC used 448 workers by June 30, 2023. A0 has completed the plan on re-arranging and using workers under EVN’s instructions.

NSMO will take all the workers from A0 at the moment of splitting.

Luong Bang