In July 2019, EVN will submit the pilot competitive retail electricity market project

To prepare for the operation of the competitive retail electricity market at the beginning of 2021, EVN is developing a pilot project which is expected to submit to the Ministry of Industry and Trade in July 2019.

Accelerating the corporate restructuring

Mr. Duong Quang Thanh – EVN’s Chairman of the Board of Directors said that, in order to accelerate the competitive retail electricity market development roadmap, EVN has been performing the restructuring of its affiliated enterprises under the direction of the Prime Minister. EVN has completely transformed the Power Generation Corporation No.3 into a joint stock company since October 1, 2018.

It is expected that the equitization of Power Generation Corporations No.1 and No.2 will be concluded in 2019 - 2020. The National Load Dispatch Center is in the process of finalizing procedures to convert itself into a one member limited liability company.

Together with EVN, there are 5 other power corporations being entitled to purchase electricity in the competitive wholesale electricity market

Separating distribution and retailing businesses

According to decisions of the Government regarding the establishment of electricity market, from 2021 the electricity retailing business will be separated from the power distribution segment when the competitive retail electricity market comes into operation. In particular, the power distribution grid management persists to be owned 100% by the Government; the electricity retailing business will be equitized in accordance with the roadmap of establishment and evolution of electricity market in different levels, while the Government will hold from more than 50% to 65% of the charter capital respectively.

Therefore, since January 1, 2016 EVN has instructed power corporations to do separate accounting for power distribution and retailing costs. At the same time, EVN has approved new organizational models of district - level power departments or companies under EVN in the way of rearranging and reorganizing grid operation management and retailing units, gradually doing organizational unbundling, facilitating the separate accounting of power distribution and retailing costs in the competitive wholesale electricity market, with the aim of organizationally separating these two businesses in the competitive retail electricity market. From 2017 until now, the power corporations have been actively and constantly performing this task in an effective manner.

Currently, EVN has been developing a pilot competitive retail electricity market project, which is expected to be submitted to the Ministry of Industry and Trade for approval in July 2019; the project of IT infrastructure to serve the complete wholesale electricity market is also under development and expected to be completed in 2020.

Mr. Nguyen Anh Tuan - Director of the Electricity Regulatory Authority of Vietnam (Ministry of Industry and Trade) said that Vietnam's electricity market evolution is on the right track and now at the competitive wholesale electricity market stage. Since January 2019, together with EVN, 5 other power corporations have been entitled to purchase electricity directly from power plants. Currently, the Ministry of Industry and Trade is studying and expanding the number of power plants participating in the electricity market. In particular, the Ministry cooperates with international consulting organizations in studying and permitting large customers to buy electricity directly from the electricity market, implementing a pilot mechanism, towards the competitive retail competitive market.

• 04/07/2019 02:07
• evn.com.vn
• 1450