On the afternoon of August 12, 2024, a ceremony was held in Hanoi to mark the transfer of the National Power System Dispatch Center (A0) – now known as the National Power System and Market Operator Company Limited (NSMO) – from the Vietnam Electricity (EVN) to the Ministry of Industry and Trade.
Speaking at the event, Mr. Dang Hoang An, Chairman of the EVN Board of Members, remarked that this event marked a significant milestone in the restructuring and development of A0, as well as a turning point for the operations of EVN and the reform and development of Vietnam’s power industry.
“The separation of A0 into NSMO and its transfer to the Ministry of Industry and Trade not only demonstrate the government’s close attention to and direction of the power industry but also represent an inevitable process that aligns with the policies of the Party and the State,” emphasized Mr. Dang Hoang An. He also affirmed EVN’s commitment to coordinating and supporting NSMO to absolutely ensure the safe, stable, and reliable operation of the power system, as well as to continue researching and proposing feasible solutions to the competent authorities, in accordance with the law, to support NSMO’s stable and continuous operation after its establishment.
On behalf of the State Capital Management Committee, Chairman Nguyen Hoang Anh affirmed that the separation of A0 and the establishment of NSMO under the State Capital Management Committee, followed by its transfer to the Ministry of Industry and Trade, signify not just a structural change but also a significant step forward, attesting to the development and maturity of Vietnam’s power industry in the new era.
As the receiving agency, Minister Nguyen Hong Dien stated that the dispatch, operation, and management of the National Power System and Market are critical tasks that fall under the purview of the state management agency. This ensures objectivity, fairness, and impartiality among affected entities.
Therefore, the government and the Prime Minister have directed the separation of A0 from EVN and the establishment of the National Power System and Market Operator Company Limited (NSMO) as a 100% state-owned enterprise to operate independently from EVN. Concurrently, the authority to represent the owner of state capital in NSMO has been transferred from the State Capital Management Committee to the Ministry of Industry and Trade. This ministry possesses the requisite apparatus and specialized personnel to effectively execute tasks in this field.
“This is also an objective and inevitable requirement of the process of operating the national power system and the competitive power market in accordance with market mechanisms, as directed by the Prime Minister in Decision No. 168/2017 on the restructuring of EVN, ensuring energy security, and serving socio-economic development and people’s lives,” emphasized Minister Nguyen Hong Dien.
According to Minister Nguyen Hong Dien, although NSMO has been separated from EVN, both are state-owned enterprises entrusted by the government with the task of ensuring national electricity security under the state management of the Ministry of Industry and Trade and the State Capital Management Committee.
To ensure NSMO’s stable, continuous, and efficient operation post-transfer, Minister Nguyen Hong Dien requested EVN, NSMO, and the functional units of the Ministry of Industry and Trade and the State Capital Management Committee to focus on effectively implementing the following contents:
First, during the transition period: In the immediate future, NSMO is requested to urgently coordinate closely with EVN to complete the draft Coordination Regulations for the operations and management of the two sides according to the new model. This should be submitted to the Ministry of Industry and Trade and the State Capital Management Committee before August 15, 2024, for consideration and approval before implementation. This will ensure the safe, continuous, stable, and reliable operation and power supply to meet the needs of economic development and the people’s lives.
The functional units of the Ministry of Industry and Trade, according to their functions and tasks, should promptly research and advise the ministry’s leaders to decide on amending, supplementing, and promulgating new or submitting to the competent authorities for promulgation, the necessary legal documents and policies to serve NSMO’s operations. This should be done with the spirit that all activities and policies, as well as the means and conditions to ensure operations in the initial phase, may not be better but must not be inferior to the period when A0 was directly under EVN.
The Minister requested the State Capital Management Committee to direct its functional units to continue coordinating closely with the relevant units of the Ministry of Industry and Trade to urge and direct EVN in the handover process and to continue providing the necessary support to ensure normal and stable conditions for NSMO’s operations until there are sufficient conditions, legal mechanisms, and specific guiding regulations for it to perform its tasks according to Decision No. 752/QD-TTg of the Prime Minister. This is especially important regarding the infrastructure serving the dispatch and operation to ensure power supply for the period of 2025-2026 when the 500 kV transmission line, circuit 3, from Quang Trach (Quang Binh) to Pho Noi (Hung Yen), is put into operation in September 2024, with higher requirements for transmission capacity, system stability, and safety.
Second, in the long term: The Drafting Board and the Editorial Board of the Amended Power Law are requested to urgently study and absorb the opinions of ministries, branches, and localities on the contents related to the conditions and mechanisms for the operation of EVN and NSMO, as well as other related issues. These should be updated and supplemented in the draft amendment of the Power Law for submission to the National Assembly for promulgation at the end of 2024.
Regarding the National Power System and Market Operator Company Limited, after having sufficient legal conditions for production operations, the company needs to proactively advise and propose specific and feasible operation models and solutions to remove any difficulties and obstacles that may arise. This will ensure the safe, stable, and reliable operation of the national power system and the fair, impartial, and transparent operation of the power market, contributing, along with EVN and related units, to ensuring power supply for the country’s socio-economic development and people’s lives.
As for the relevant ministries and branches, the Minister requested that they direct and organize the implementation of the tasks assigned in Decisions No. 752/QD-TTg and No. 753/QD-TTg of the Prime Minister, especially regarding supplementary capital, investment in infrastructure, mechanisms to ensure working capital for NSMO’s operations, and issues related to remuneration and policies for the company’s employees. At the same time, they should coordinate closely with the Ministry of Industry and Trade in directing and managing NSMO’s operations to ensure efficiency and compliance with regulations.
On August 1, 2024, the Prime Minister issued Decision No. 752/QD-TTg on the separation of A0 from EVN and the policy on the establishment of NSMO under the State Capital Management Committee. Decision No. 753/QD-TTg was also issued to approve the policy on transferring the authority to represent the owner of state capital in NSMO from the State Capital Management Committee to the Ministry of Industry and Trade.
On August 5, 2024, the Chairman of the State Capital Management Committee issued Decision No. 353/QD-UBQLVNN on the establishment of the National Power System and Market Operator Company Limited and Decision No. 355/QD-UBQLV on the appointment of Mr. Nguyen Duc Ninh, Director of A0, as the Director of the National Power System and Market Operator Company Limited (NSMO).
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