Government issues new Decree on assignments and authorities of Ministry of Industry and Trade and EVN’s operations

The Government has just 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, of the Government stipulating functions, tasks, authorities and organizational structure of the Ministry of Industry and Trade and Decree No. 26/2018/ND-CP dated February 28, 2018 of the Government on the Charter of Organization and Operation of Vietnam Electricity Group (EVN).

Accordingly, Decree No. 105/2024/ND-CP amends Point a, Clause 2, Article 4 on the operational objectives and business lines of EVN as follows: Main business lines: Generation, transmission, distribution (including dispatching of the power distribution system) and trading of electricity; Import and export of electricity; Investment and management of investment capital in electricity projects; Management, operation, repair, maintenance, overhaul, renovation, upgrading of electrical, mechanical, control, and automation equipment in the lines of generation, transmission and distribution of electricity, and electrical works; electrical testing; Project management consultancy, design survey consultancy, investment project preparation consultancy, bidding consultancy, budget preparation, review consultancy and construction supervision of power generation projects, power line projects and substation projects".

Amending point i, clause 4, Article 10 on EVN's management and operation organization as follows: Act as a focal point to gather resources of member enterprises and associated enterprises to bid and implement joint projects agreed upon and implemented by subsidiaries and associated companies.

Specifically: Cooperate with the Power Generation Corporations and the National Power Transmission Corporation to deploy investment and manage power generation projects and transmission grids according to the National Power Development Plan approved by the Prime Minister and other investment projects; coordinate in implementing electricity generation and trading and participating in the competitive electricity market;

Coordinate with Power Corporations to develop smart power distribution systems, and electricity trading, automate, control, and promote the development of a competitive wholesale electricity market and competitive retail electricity market;

Together with its subsidiaries, which are power engineering consulting companies, electrical equipment manufacturing, and electrical construction companies, to organize consulting, production, manufacturing, construction, and trading of electrical products and works; Organize the implementation of measures to manage and operate the power system under its management scope according to legal regulations to ensure the security and safety of the national power system; manage the power system, internal information system and information technology system serving the production and business of electricity and the electricity market under its management scope”.

Amend Clause 1, Article 18 on EVN's obligations in business as follows: Conduct business in the correct registered business line; ensure the quality of products and services provided by EVN according to registered standards. Comply with the operating methods, commands, and instructions of the national power load dispatch units according to legal regulations. Implement payment for electricity and other obligations as prescribed in Power Purchase Agreements."

Decree No. 105/2024/ND-CP also amends and supplements Clause 7, Article 2 of Decree No. 96/2022/ND-CP on assignments and authorities of the Ministry of Industry and Trade. Accordingly, Point d is amended and supplemented as follows: Take charge and coordinate with the Ministry of Finance to guide the method of establishing electricity generation price framework, electricity wholesale price framework, electricity transmission price, electricity distribution price, power system auxiliary service price, power system operation dispatch price and electricity market transaction management price; approve the electricity system operation dispatch price and electricity market transaction management price after consulting with the Ministry of Finance; approve electricity generation price framework, electricity wholesale price framework, electricity transmission price, electricity distribution price and power system auxiliary service price, except for the case specified in Clause 2, Article 62 of the Electricity Law; check termed PPAs between power generation units and power purchase units, termed wholesale electricity purchase contracts according to the Government's regulations;"

At the same time, add point g as follows: Implement state management of the command and operation of power generation, transmission, distribution systems and electricity allocation in the national power system, and operate electricity market transactions".

Decree No. 105/2024/ND-CP takes effect from August 1, 2024.

Decree%20No_%20105%202024%20ND-CP.pdf


  • 04/08/2024 11:15
  • Translator: Vân Ly
  • 224