EVN restructuring: New service companies are about to be launched

The introduction and operation of electricity service business sector will make the power market more "dynamic". The power sector will earn more, and customers will have more choices, etc.

For the time being, EVN has established three power service companies in EVNNPT, EVNHANOI and EVNHCMC. At present, EVN is preparing for enabling three power corporations including the Northern, the Central and the Southern ones to separate their service activities from their power production and trading activities.

"Erasing" Grid Companies?

The pioneer in the execution of power sector restructuring policy is the National Power Transmission Corporation (EVNNPT) which officially announced the establishment of National Power Transmission Service Company as a subsidiary of this Corporation in the mid of 2017.

The Company is abbreviated as NPTS by the power sector, however in reality the Company provides a wide range of services   to the power transmission system such as: installation, testing, repair, rectification, failure handling, etc.

The separation between service activities and grid operation initially faced numerous difficulties, because employees were not well informed of its rationale and benefits. However after a period of implementation, NPTS has proven that its establishment is indispensable in the re-structuring of the power transmission sector.

"The clear split-up between these two areas contributes to improving the national power transmission system operation quality, the efficiency of production and business activities, and enhancing the labor productivity of the Corporation", said EVNNPT Chairman Dang Phan Tuong when NPTS began to "deliver" its first products.

As for the power business and distribution sector, i.e regional Power Corporations, the organizational rearrangement and selection of models for introduction of power service companies is somewhat more complicated but to this end, the "ultimate goal" is to improve business performance against new demands of the competitive wholesale market.

EVN Chairman Duong Quang Thanh said that three regional Power Corporations in the North, Central and South have their own existing High Voltage Grid Companies. It is expected that these companies will be the key force to form Power Service Companies under these Corporations in the future.

EVN has requested the three Power Corporations to study an operation model towards changing the name of High Voltage Grid Companies to Power Service Companies, after transferring the grid operation part to local power companies.

In addition, the leader of the power sector expects that the restructuring and rearrangement of these companies will be an important pre-requisite for the streamlining and refining of EVN’s organizational apparatus in the next 3 - 5 years, aiming at reducing thousands of employees.

Managers will be selected via competitive examination

The Northern Power Corporation (EVNNPC) has been expediting necessary procedures to establish the Northern Power Service Company, scheduled to be “launch” on January 1, 2019.

The approach of EVNNPC as well as the direction of the Group is to transfer the 110kV grid operation part from the Northern High Voltage Grid Company to 27 local power companies. The rest of the company will be incorporated in the Northern Power Service Company, with the main tasks such as: development of new meters, electricity services after meters; design consultancy, electrical construction, installation, overhaul, major repair, etc.

Mr. Thieu Kim Quynh, Chairman of EVNNPC, said: "In the past, 80% of the repairs of 110kV power lines, such as painting towers, repairing damaged equipment, were outsourced through bidding. EVNNPC can perform only minor regular repair jobs. When establishing power service companies, it is certain that the mentioned 80% of repair works will be assumed by the Northern Power Service Company.

The establishment of the service area not only makes the operation of various areas in the Corporation more professional but more importantly it can increase revenue for the Corporation.

 At that time, services must be real services. Because products to be delivered to the market by this company will be more, and the market will be the one who "evaluates" the service provider in the future.

Accordingly, EVNNPC expects the initial manpower structure to be 20 people, in which a deputy director will be selected through examination.

When revenue is generated from service activities, there should be positions for talented and experienced personnel. Managers should be selected from the young, qualified people so they can fit and satisfy the company’s requirements as soon as possible.

Where will thousands of high voltage grid workers come?

Considering specific characteristics of the Corporation, Chairman of EVNNPC Thieu Kim Quynh said that in order to establish the power service company, EVNNPC plans to propose that 300 out of 2,400 laborers from the Northern High Voltage Grid Company will be relocated to 2 Project Management Units of EVNNPC after these 2 units are allocated more works.

More than 2,000 remaining laborers at 27 High Voltage Grid Branches in localities will join Provincial Power Companies, which are in charge of 110kV local grids.


  • 28/09/2018 09:12
  • evn.com.vn