According to the Ministry of Industry and Trade, the model of Vietnam's electricity market as well as international experience in countries that have built electricity markets, the role of A0 (including the system operator (SO) and the Market Operator (MO)) and the role of the transmission grid owner of the National Power Transmission Corporation - Transmission Owner (TO) are closely related functions because these are basic services of the electricity system, with natural monopoly. Therefore, the combination of the three services (TO-SO-MO) will determine the organizational model of A0. However, to implement the direction of the Prime Minister, priority is given to transferring the status quo of A0 (SO and MO) to the Ministry of Industry and Trade.

The transfer of management and direction of A0 from EVN to the Ministry of Industry and Trade can be carried out in one of two ways. First, A0 becomes a public service unit providing power system operation and electricity market management services under the Ministry of Industry and Trade. Option 2, A0 becomes a 100% state-owned single-member limited liability company (LLC) for power system operation and electricity market management under the Ministry of Industry and Trade.

Both of the above options ensure the criteria of independence and objectivity of A0 compared to the present, the ability to coordinate with related units and the ability to flexibly innovate and create.

Activities at the National Power System Control Center. Photo: VNA

In the current conditions, to meet the goal of transferring the A0 status to the Ministry of Industry and Trade, the model of a public service unit providing power system operation services and managing the electricity market is appropriate. In the next phase, after the Law on Prices and the revised Law on Electricity are promulgated, option 2 can be considered.

Regarding the specificity, the specific nature of the newly established unit under the Ministry of Industry and Trade is the operation of the power system and the operation of the electricity market. To ensure the safe and reliable operation of the power system, this unit has personnel holding positions participating in the operation of the power system and the electricity market with very heavy work pressure, having to control and operate the entire power system with hundreds of power plants, hundreds of thousands of different high-voltage electrical equipment, during the working process, decisions must be made quickly, accurately and mistakes are not allowed because each mistake can be paid for by damaging high-value equipment or causing widespread power outages, and can even endanger the health and lives of other employees. The above-mentioned group of workers are recruited with high requirements (having a university degree at a good or excellent level or higher), are trained intensively (from 12 to 18 months) and must pass a thorough examination. Only when they meet the requirements will they be allowed to be assigned to jobs, including the following positions: National power system dispatcher, national power system calculation engineer, electricity market transaction operation engineer, regional power system dispatcher, regional power system calculation engineer, SCADA engineer...

Furthermore, since electricity is a special commodity that must always balance production (supply) and consumption (demand), these positions are responsible for ensuring the operation of the power system every second, every minute, 24 hours a day, 7 days a week. The electricity market also executes orders every 30 minutes/cycle on all days, including holidays (this cycle can be reduced to 15 minutes or 5 minutes like countries with developed electricity markets when the infrastructure is adequate).

This is the most important technical staff for the safe and economical operation of the power system, which needs to be maintained stably and is not easily replaced because it takes approximately 2 years (including recruitment, training and job title internship) to have new personnel. Therefore, qualified personnel are assigned jobs with high and competitive salaries according to their titles (according to the report, the average salary of the direct production department is about 40 million/person/month).

Therefore, in case A0 is transformed into a public service unit under the Ministry of Industry and Trade, there must be a specific financial mechanism that is sufficient to ensure that salaries and allowances are maintained at the same level as the current level to avoid disruptions in A0's human resources, leading to risks in the stable, safe and efficient operation of the power system, especially during the transition and completion of the organizational model.

Currently, in terms of legal conditions and infrastructure, through reviewing current legal regulations, the Ministry of Industry and Trade does not have the function of directly managing and operating A0. Therefore, in order to adjust the management and direction of A0 to the Ministry of Industry and Trade according to the regulations of the Party and the State, it is necessary to amend legal documents.

Specifically, with the Government's Decrees, it is necessary to review and amend Decree No. 26/2018/ND-CP stipulating the Charter of organization and operation of Vietnam Electricity Group to remove the content of "commanding and operating the system of production, transmission, distribution and allocation of electricity in the national power system" from the list of main business lines of Vietnam Electricity Group, and remove the National Power System Dispatch Center from the list of units under EVN. At the same time, review and amend Decree No. 96/2022/ND-CP stipulating the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade to supplement and clarify the function of "commanding and operating the system of production, transmission, distribution and allocation of electricity in the national power system" in the tasks of the Ministry of Industry and Trade.

To ensure that AO continues to operate stably and avoid disruptions that may affect the security of electricity supply, there needs to be an appropriate roadmap to transfer the current assets and personnel to the Ministry of Industry and Trade in accordance with the provisions of law on management of public assets, public service units, and civil servants.

The Ministry of Industry and Trade also proposed that the Prime Minister issue a decision to transfer the status quo of the National Power System Dispatch Center to the Ministry of Industry and Trade; assign the Ministry of Industry and Trade to preside over and coordinate with relevant agencies and units to review and report to the Government to amend and supplement Decree No. 96/2022/ND-CP stipulating the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade; Assign the State Capital Management Committee at Enterprises to preside over and coordinate with relevant agencies and units to review and report to the Government to amend and supplement Decree No. 26/2018/ND-CP stipulating the Charter of organization and operation of Vietnam Electricity Group; revise, complete and submit to the Prime Minister for approval the Project on restructuring the electricity sector towards converting the operating model of the National Power System Dispatch Center to be under the Ministry of Industry and Trade on the basis of transferring the status quo of personnel, assets and capital from EVN to the newly established unit. The newly established unit will sign a contract to provide power system dispatching services and operate electricity market transactions with EVN or market members according to the plan approved in the A0 model conversion project.

In addition, it is recommended that the Prime Minister assign the Ministry of Finance to preside over and coordinate with the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Industry and Trade, the State Capital Management Committee at Enterprises and relevant units to review current legal regulations; promulgate or submit to competent authorities to promulgate regulations on the price of power system operation and price of electricity market transaction operation, specific mechanisms on costs of maintaining unit operations, salary and allowance regimes for direct production personnel of public service units providing power system operation and electricity market operation services under the Ministry of Industry and Trade; direct the Ministry of Finance to provide additional funding to the Ministry of Industry and Trade to maintain the unit's operations and pay salaries to direct production personnel at public service units providing power system operation and electricity market operation services under the Ministry of Industry and Trade in the direction of ensuring current financial regimes and salary levels.

A0 is a unit that undertakes two functions stipulated in the Electricity Law: National Power System Dispatching Unit and Electricity Market Transaction Operation Unit. To ensure fairness and transparency in electricity market operation, Decision No. 168/QD-Tg dated February 7, 2017 of the Prime Minister approving the Project on Restructuring the Electricity Industry for the period 2016-2020, with a vision to 2025, stipulates: A0 will be transformed into a Single Member Limited Liability Company for Operation of the Power System and Electricity Market with independent accounting within EVN in the period 2019-2020, and then transformed into an independent unit in terms of personnel, legality, finance, not sharing interests with the electricity seller and the electricity buyer, with the State holding 100% of the charter capital in the period 2021-2025.

Since the State Capital Management Committee at Enterprises was established in September 2018, the task of restructuring A0 has been assigned to this unit. However, up to now, the restructuring of A0 has not been approved and implemented.

Current status A0 includes the National Power System Dispatch Center headquartered in Hanoi and regional Power System Dispatch Centers (A1 in the North, A2 in the South, A3 in the Central). A0 has a total of 454 employees. Most of A0's employees are highly qualified workers (91% have university degrees or higher) and are direct production workers (62% of total employees).

VNA