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VIETNAM AIMS TO QUICKEN ELECTRICITY SECTOR RESTRUCTURING
Prime Minister Nguyen Xuan Phuc has approved a project on restructuring the electricity industry from 2016-2020, with a vision to 2025, to increase transparency and fair competition in the field.
From 2016-2018, power generating corporations under the Electricity of Vietnam (EVN), the Vietnam Oil and Gas Group (PVN) and the Vietnam National Coal – Mineral Industries Holding Corporation Limited (Vinacomin) will be equitised in line with the plans ratified by the PM. EVN, PVN and Vinacomin will continue managing power generating corporations and hold at least 51 percent of stake in them.
Power generating corporations will be responsible for implementing new investment projects in accordance with the National Power Development Plan for 2011-2020, with a vision towards 2030.
They will work to carry out projects to improve the efficiency of corporate management, maintain competitiveness, ensure profitable production and business, and increase the ratio of equity capital for investment and development as required by financial institutions.
Renewable energy plants are encouraged to join in the pilot electricity wholesale market.
Regarding electricity supply and retail, electricity companies will maintain the organisation as one-member limited companies, with 100 percent of their charter capital owned by EVN.
Regulatory mechanisms will be built among power companies to meet requirements of the power wholesale market.
The National Load Dispatch Centre of Vietnam (NLDC) will be responsible for operating power systems and the power market, and building a plan to transform the NLDC into a one-member limited company with independent accounting.
Renovation will be also carried out in the electricity regulatory department under the Ministry of Industry and Trade to satisfy management and supervision of requirements for the competitive wholesale market.
As from 1019, Capital divestment will be accelerated in power generating corporations to reduce State owned stakes to below controlling level. Those corporations are scheduled to be separated from EVN, PVN and Vinacomin after two years of equitisation.
Build-operate-transfer power plants will be encouraged to join the competitive wholesale market.
Source: VNEP
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