Instead of being an accounting unit belonging to Electricity of Vietnam (EVN), it will be put under the management of the Ministry of Industry and Trade (MOIT).

The Government Office has announced the conclusion of Deputy Prime Minister Tran Luu Quang related to the relocation of A0.

The transfer of A0 to MOIT aims to facilitate the operation of the market mechanism in the relationship between the national power system dispatching unit and the generation, transmission and distribution unit.

In order to ensure A0’s smooth and uninterrupted operation during the transfer process, Quang has requested MOIT to strengthen the regular, direct, effective and comprehensive supervision over A0’s operation and stop risks and incidents as seen before.

The government has asked ministries, State Capital Management Committee (SCMC) and EVN to plan their actions to implement the assigned tasks. This aims at ensuring the pace and quality of the project on splitting A0, establishing a new legal entity and successfully transferring the new enterprise from SCMC to MOIT.

The Ministry of Planning and Investment (MPI) will take major responsibility for examining the project to be sure that all conditions are ready before it is submitted to the PM for consideration and approval.

SCMC and EVN will take responsibility for completing the transfer plan and method to submit to the Prime Minister; preparing necessary steps to separate and transfer A0 as planned.

Also, the government has requested to clearly determine the financial mechanism that generates revenue for A0 from the day it is split from EVN. It is necessary to set a deadline for completing the amendment, supplementation and promulgation of new circulars within the competence of MOIT.

In addition, Quang has requested MPI to urgently convene a meeting with relevant ministries and branches to clarify some issues, including the conditions for splitting, and establishing new businesses to ensure the strict compliance with the laws. 

The agencies have also been told to work out on the mechanisms that allow A0 to operate smoothly and effectively without interruption so as to avoid possible impacts on A0’s ongoing investment projects.

Prior to that, in the report to the government reviewing the plan on splitting A0 from EVN to set up the National Power System and Market Operation (NSMO) under SCMC, MPI stressed that there should be a financial regime for NSMO for three phases.

Phase 1: from the day A0 is split from EVN to set up NSMO (end of 2023)

Phase 2: from January 1, 2024 to the day the amended Law on Pricing takes effect

Phase 3: After the Law on Pricing takes effect, MOIT builds a financial mechanism for NSMO.

Luong Bang