The government has issued Decree 105, amending and supplementing several articles of Decree 96, which defines the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade. It also amends Decree 26, the Charter of Organization and Operation of the Vietnam Electricity Group (EVN).
Among the changes, the Ministry of Industry and Trade will now take the lead in electricity regulation, working with the Ministry of Finance to guide the methods for setting electricity generation, wholesale, transmission, distribution, and ancillary service prices. This includes prices for system control, operation, and market transaction management.
New regulations define the tasks and authority of EVN (Illustrative image)
Together, the two ministries will guide the approval process for system control and market transaction management prices, taking into account the opinions of the Ministry of Finance. They will also approve electricity generation and wholesale prices, transmission and distribution prices, and ancillary service prices.
Additionally, Decree 105 assigns the Ministry of Industry and Trade with the task of managing the command and control of the production, transmission, distribution, and allocation of electricity in the national power system, as well as market transaction management.
Amendments to EVN’s Main Business Lines
Notably, Decree 105 amends EVN’s main business lines, which now include electricity generation, transmission, and distribution (including distribution system control) and wholesale and retail electricity trading. It also covers electricity import and export, investment, and capital management for electricity projects.
EVN is responsible for the management, operation, maintenance, overhaul, refurbishment, upgrade, and experimentation of electrical, mechanical, control, and automation equipment in the production, transmission, and distribution of electricity, as well as electrical works.
In terms of organizational management and operation, EVN will serve as the focal point for pooling the resources of its member companies and affiliates to participate in bidding and implementing joint projects agreed upon by its subsidiaries and affiliates.
This includes collaborating with the National Power Transmission Corporation and the National Power Generation Corporation to invest in and manage power sources and transmission grids in accordance with the Master Plan for National Power Development approved by the Prime Minister, as well as other investment projects. EVN will also coordinate electricity production and trading and participate in the competitive power generation market.
The newly issued decree also amends EVN’s business obligations, which now include operating within the registered business lines, ensuring product and service quality, complying with the national power system’s operating procedures and commands, and fulfilling payment obligations as per the power purchase agreement.
