The Ministry of Home Affairs does not agree to convert A0 into a public service unit.

VietNamNetVietNamNet19/06/2023


The Ministry of Home Affairs has just sent the Prime Minister a document with comments on transferring the National Power System Dispatch Center from Vietnam Electricity Group (EVN) to the Ministry of Industry and Trade.

According to the proposal of the Ministry of Industry and Trade, the transfer of management and direction of the National Power System Control Center (A0) from EVN to this Ministry can be carried out according to 1 of 2 options.

Option 1 : 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) operating the power system and managing the electricity market under the Ministry of Industry and Trade.

A0 will separate from EVN to belong to the Ministry of Industry and Trade.

Commenting on the proposal of the Ministry of Industry and Trade, the Ministry of Home Affairs said: In case A0 is converted into a public service unit, it will be entangled with many related legal documents (on organizational structure, policy mechanisms, bidding, price management, etc.) and will not be able to separate the business function from the state management function as required in Resolution No. 55-NQ/TW; at the same time, it will not meet the development roadmap of A0 in Decision No. 168/QD-TTg of the Prime Minister.

On the contrary, the separation of A0 from EVN to the Ministry of Industry and Trade and its operation under the enterprise model has a full legal basis for immediate implementation (establishing a new state-owned enterprise in accordance with the provisions of the Enterprise Law, the Law on Management and Use of State Capital Invested in Production and Business at Enterprises and Decree No. 23/2022/ND-CP dated April 5, 2022 of the Government on establishment, reorganization, conversion of ownership, and transfer of ownership representation rights at enterprises in which the State holds 100% of charter capital).

According to the Ministry of Home Affairs, the transformation of A0 into a Limited Liability Company for Operation of the Electricity System and Electricity Market under the Ministry of Industry and Trade, operating independently from the electricity seller and the electricity buyer, only changes the ownership representative at the enterprise in which the State holds 100% of the charter capital, ensuring compliance with the roadmap and requirements in Decision No. 168/QD-TTg, creating conditions for the operation of the market mechanism in the relationship between the national electricity system dispatching unit and the electricity generation unit, electricity transmission unit, and electricity distribution unit according to the provisions of the Electricity Law.

"A0 operating under the model of a one-member LLC will have the conditions to attract high-quality human resources, meeting the requirements of the national power system dispatching task (this is very difficult to do if A0 is converted into a public service unit), ensuring compliance with the price and fee management mechanism (power system dispatching fee and electricity market transaction management fee are stipulated as a cost component of electricity price, similar to electricity transmission price) according to the provisions of the Electricity Law", the Ministry of Home Affairs commented.

Therefore, the Ministry of Home Affairs proposed to complete the plan to transfer A0 from EVN to the Ministry of Industry and Trade and develop a project to convert A0 into a Limited Liability Company for Power System and Electricity Market Operation under the Ministry of Industry and Trade.

A0 to the Ministry of Industry and Trade from EVN: Raising many urgent solutions The transfer of the National Power System Control Center (A0) to the Ministry of Industry and Trade needs to be synchronized with the development of the retail electricity market, in which electricity prices are of vital importance.


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