Will a business in the Electrical industry change its name?

After more than 6 years of operation, the Transmission Technical Service Company (under the National Power Transmission Corporation - NPT) will need to reorganize and restrucure. Why?

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In February 2017, the Board of Directors of Vietnam Electricity Group (EVN) issued a directive for the establishment of the Power Transmission Technical Services Company (NPTS), with the aim of separating and specializing the management of power transmission grid operation with repair and maintenance services. The main task of NPTS is to participate in regular experiments, major repairs, routine repairs, and incident handling.

With the above model, EVN wants NPTS to be able to separate the accounting of technical service costs from the management of power grid operation. At the same time, it must separate the salary fund of NPTS from the production and business electricity salary fund.

After a period of preparation, in June 2017, NPTS with 681 people officially launched and started operation.

However, according to a recent report obtained by PLVN, after more than 6 years of existence, some initial objectives have not been achieved, while the NPTS workforce has “swelled” to over 1,000 people.

The financial expectations of operating under this model have also not been met. Specifically, the separation of costs between the technical service stage and the operation management stage has not been achieved.

During its operation, the salary regime of employees tends to increase gradually each year, but in reality, they still receive salaries from the production and business electricity fund even though they are working in the technical service sector.

In addition to transmission, the power distribution companies also have repair and maintenance service companies.

The technical aspect here is that the separation and specialization of management of power transmission grid operation with repair and maintenance services have been achieved. The management of experimentation and repair has been essentially unified throughout NPT after a period of time…

However, in implementing EVN’s directive, NPT has recently summarized a fairly realistic picture of the current situation of NPTS, and at the same time, it has proposed a restructuring plan for NPTS, transferring some functions (experimentation, repair of power grid, telecommunications, and transportation…) to power transmission companies (PTC) under NPT.

As for NPTS, it may be renamed and only carry out tasks related to information technology, automation, and scientific research.

It is known that besides NPT, the 5 power distribution companies under EVN (Northern Power Corporation, Central Power Corporation, Southern Power Corporation, and Hanoi and Ho Chi Minh City Power Corporations) have also established power service companies based on the transformation of the high-voltage grid companies. EVN has also established a dependent accounting unit, operating in this field, named Power Service Repair Center (EVNPSC).

After 6 years of operation, many of these units have revealed many limitations.