The government has issued Decree No. 105/2024/ND-CP dated August 1, 2024, amending and supplementing a number of articles of Decree No. 96/2022/ND-CP dated November 29, 2022, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade. It also amends and supplements the Government’s Decree No. 26/2018/ND-CP dated February 28, 2018, on the Organization and Operation of the Vietnam Electricity Group (EVN).
According to Decree 105, the Ministry of Industry and Trade shall take charge and collaborate with the Ministry of Finance to guide the methods for setting electricity generation prices, wholesale electricity selling prices, electricity transmission prices, electricity distribution prices, electricity system auxiliary service prices, electricity system operation dispatch prices, and electricity market transaction dispatch prices.
The decree approves the electricity system operation dispatch price and the electricity market transaction dispatch price after seeking the opinion of the Ministry of Finance. It also approves the electricity generation price frame, the wholesale electricity selling price frame, the electricity transmission price, the electricity distribution price, and the electricity system auxiliary service price, except for cases stipulated in Clause 2, Article 62 of the Law on Electricity. It further inspects electricity purchase and sale contracts with a term between the electricity generator and the electricity purchaser and wholesale electricity purchase and sale contracts with a term as stipulated by the Government.
The decree also stipulates that the Ministry of Industry and Trade shall perform the state management function for the direction and operation of the system of electricity production, transmission, distribution, and allocation in the national electricity system and the direction of electricity market transactions.
The Ministry of Industry and Trade is mainly responsible for electricity production, transmission, and distribution (Photo: EVN)
Decree 105/2024/ND-CP also amends and annuls a number of articles of the Statute on the Organization and Operation of the Vietnam Electricity Group (EVN) issued together with Decree No. 28/2018/ND-CP.
Accordingly, the decree stipulates EVN’s business objectives and sectors as follows:
EVN engages in electricity production, transmission, distribution (including distribution system dispatch), and electricity trading; electricity import and export; investment and capital management in electricity projects;
Management, operation, repair, maintenance, overhaul, renovation, and upgrade of electrical, mechanical, control, and automation equipment in the electricity production, transmission, and distribution chain, as well as electrical experiments;
Consultancy in project management, survey and design consultancy, investment project formulation consultancy, bidding consultancy, estimation, consultancy for appraisal, and supervision of the construction of power sources, power lines, and transformer substations.
In terms of EVN’s organizational management and leadership, it serves as a focal point for pooling the resources of member companies and affiliated companies to participate in bidding and implementing common projects agreed upon by the subsidiary companies and affiliated companies.
EVN, together with the National Power Transmission Corporation, will implement investment and management of power source and power grid transmission projects in accordance with the Master Plan for National Power Development approved by the Prime Minister and other investment projects. They will also coordinate in electricity production and business and participate in the competitive power generation market;
Together with the Power Corporations, EVN will cooperate in developing a smart electricity distribution system, electricity business, automation, control, and promoting the development of a competitive wholesale electricity market and a competitive retail electricity market;
Together with subsidiary companies that are power construction consulting companies, power equipment manufacturing companies, and power construction companies, EVN will organize consulting, production, manufacturing, construction, and business of power products and works;
Implement measures to manage and operate the power system under its management in accordance with the law to ensure the security and safety of the national power system; manage the power system, the internal information system, and the information technology system serving electricity production, business, and the power market under its management.
EVN’s obligations in business are also stipulated, including operating in the registered business sectors, ensuring the quality of products and services provided by EVN according to the registered standards, complying with the mode of operation and commands of the national power system dispatch unit as prescribed by law, and making payments for electricity and other obligations according to the electricity purchase and sale contract.
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