Transferring the Power System Control Center from EVN to the Ministry of Industry and Trade

The Prime Minister requested the National Power System Dispatch Center (A0) to separate from EVN and transfer to the Ministry of Industry and Trade for management, according to a decision from 2017, but implementation has been slow.

On June 6, Prime Minister Pham Minh Chinh requested the transfer of the National Power System Dispatch Center (A0) from Vietnam Electricity Group (EVN) to the Ministry of Industry and Trade in June. This is to ensure transparency in electricity market operations.

EVN owns more than one-third of the electricity generation sources, and manages and operates the entire electricity transmission and distribution system. Meanwhile, A0 is a dependent accounting unit of EVN. Separating the dispatch center from the group aims to clarify the interests between the electricity seller and buyer.

A0 engineers are operating the national power system. Photo: EVN — A0 engineers are operating the national power system. Photo: *EVN*

A0 operates the transmission and distribution of electricity to ensure the safe and stable operation of the power system. This unit is also responsible for operating power plants; exploiting and regulating reservoirs; and handling incidents in the 500 kV power system. The separation of A0 from EVN was stated in the 2017 Decision on restructuring the electricity sector but has not been implemented.

In the submission to the Prime Minister on June 14, the Ministry of Industry and Trade requested a special financial mechanism when transferring A0, with two 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 is that A0 becomes a 100% state-owned LLC operating the power system and electricity market under the Ministry of Industry and Trade.

The Ministry of Industry and Trade believes that option 1 is reasonable in the current context. After the revised Law on Prices and Law on Electricity are promulgated, the second option can be considered.

The power system control center has personnel under great pressure, controlling and operating hundreds of power plants and thousands of high voltage electrical equipment. This requires speed, accuracy, no errors, ensuring 24/7 operation.

"This is a crucial force for the safe and economical operation of the power system. It needs to be maintained stably and is not easy to replace because it takes nearly two years to have new personnel," said the Ministry of Industry and Trade.

To avoid disruption of human resources, leading to risks in the stable, safe and efficient operation of the power system, the Ministry of Industry and Trade proposed a special financial mechanism to maintain salaries and allowances equivalent to those currently enjoyed by dispatch engineers. The average salary of engineers at the National Power Dispatch Center is 40 million VND per person per month.

To avoid disruption and impact on energy security, the Ministry also proposed that there should be a suitable roadmap to transfer the current assets and personnel of A0 from EVN to the Ministry and propose amending regulations related to the charter of organization and operation of EVN; tasks, powers and organizational structure of the Ministry.

The National Power System Dispatch Center (A0) was established in 1994, responsible for dispatching the power system and operating electricity market transactions.

EVN is currently under inspection for its electricity supply, in the context of frequent power outages in Hanoi and other northern provinces since early June. The average electricity consumption nationwide reached nearly 820 million kWh per day in May, an increase of more than 20% compared to April. In Hanoi alone, the average electricity consumption in May was more than 75.4 million kWh, an increase of 22.5% compared to April. By June 8, the average consumption reached more than 85.6 million kWh.

Mr. Minh

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