The Electricity of Vietnam (EVN) will continue to hold a monopoly on power distribution and retail sale through the management and control of power distribution and retail trade companies in the form of one-member limited liability companies.

This was pursuant to the project on the power sector’s restructuring in the 2016-2020 period, with a vision to 2025, which has recently been approved by the Government.

Under the project, from 2016 to 2018, power generation companies under the EVN, the Vietnam Oil and Gas Group (PVN) and the Vietnam National Coal—Mineral Industries Group (Vinacomin) will be equitised with at least 51% of their shares held by these groups.

After the equitisation, power generation companies will take charge in carrying out projects investing in new power sources as approved by the Government.

In the meantime, the National Power Transmission Corporation will retain its operations under the form of a one-member limited liability company with 100% of its chartered capital held by the EVN.

The National Load Dispatch Centre under the EVN will be considered to shift to a one-member limited liability company in the future.

In the 2019-2020 period, the State capital will be divested from power generation companies and these companies will be separated from EVN, PVN and Vinacomin.

In addition, power plants will be invested in the form of BOT (build-operate-transfer) contracts and will gradually participate in the competitive power wholesale market.

The project on power sector restructuring was issued in a bid to improve the business efficiency of the power sector associated with the transfer of its operations towards market mechanisms and boosting the transparency and healthy competition of the power sector in the future.

Dtinews